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Lesechka [4]
3 years ago
11

When inventory declines in value below original (historical) cost, and this decline is considered other than temporary, what is

the maximum amount that the inventory can be valued at?
a. Sales price
b. Net realizable value
c. Historical cost
d. Net realizable value reduced by a normal profit margin
Business
1 answer:
quester [9]3 years ago
5 0

Answer:

Explanation:

The applicable accounting standard IAS 2 (Inventory) requires that inventory be carried at the lower of cost or net realizable value.

Initial recognition of inventory is at cost. In other words, where the cost is lower than the net realizable value, inventory is written down to the net realizable value.

As such, when inventory declines in value below original (historical) cost, and this decline is considered other than temporary, the maximum amount that the inventory can be valued at is the net realizable value.

The right option is b. Net realizable value

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dual mandate.

Explanation:

dual mandate -

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Fill in the blank with one of the following words: bacteria, fungi, parasites, viruses.
denis23 [38]

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Corona and china

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3 years ago
Vaughn’s standard quantities for 1 unit of product include 5 pounds of materials and 1.0 labor hours. The standard rates are $4
Lilit [14]

Answer:

$31.00

Explanation:

Calculation to determine what The total standard cost of Vaughn's product is

Using this formula

Total standard cost of product=(Material Standard rate per pound × pounds of material) + (Labor standard rate per hour × labor hours) + (Standard overhead rate x labor hours)

Let plug in the formula

Total standard cost of product=[($4 × 5) + ($5 × 1.0)]+ ($6 × 1.0)

Total standard cost of product=($20+$5)+$6

Total standard cost of product= $25.00 +$6

Total standard cost of product= $31.00

Therefore The total standard cost of Vaughn's product is $31.00

6 0
3 years ago
Which of the following questions is the most appropriate way for a retail associate to understand if a customer prefers inexpens
Aleonysh [2.5K]

Answer:

"What clothing brands do you usually prefer?"

Explanation:

The retail salesman will infer if the customer likes expensive or cheap brands as this person is trained to know the difference in prices of all the brands that the branch sells.

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3 years ago
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