Accounting for IGCSE & O level - Final Statements (Section 13 - No. 28)
Which item is considered when determining Net Realisable Value of inventory?
The original purchase price of the inventory.
The cost of replacing the inventory.
Estimated selling price less costs to sell.
The amount of depreciation on the inventory.
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Net Realisable Value (NRV) is determined by subtracting estimated selling costs from the estimated selling price of the inventory.