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patriot [66]
3 years ago
8

Which of the following is false regarding net realizable value (NRV)?

Business
1 answer:
juin [17]3 years ago
6 0

Answer:

A. NRV is the estimated selling price after processing the product beyond the split-off point.

Explanation: Net realisable revenue is a term used in inventory management or in accounting to refer to the amount of cash expected front the sale of an asset or an inventory after subtracting the total cost associated with the disposal (sale) of that asset or inventory from the total amount received from the buyers of the inventory or the asset. Net realisable revenue can be used to determine the actual net value of an asset.

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In the given case, the company in question labelled it's products as environmental friendly despite knowing such is not the case as the facts suggest otherwise.

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