Accounting for IGCSE & O level - Final Statements (Section 13 - No. 35)
What does the term 'net realisable value' refer to concerning inventory?
The original cost of the inventory.
The amount the inventory could be sold for less any additional costs to make the sale.
The current selling price of the inventory.
The cost of producing the inventory.
Explanation
Net realisable value is the amount the inventory could be sold for less any additional costs to make the sale, such as selling costs, shipping, etc.
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