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<p><span>a- Replacement Cost </span></p> <p><span>b- Realizable Value</span></p> <p><span><span>c- Historical Cost </span></span></p> <p><span><span>d- Standard Cost</span></span></p> <p> </p>
The correct answer answer B
Realizable value
Option B
Agreed with Champs
B. Realizable / current market value of an asset.
c- Historical Cost
Is consistent with the logic in the absence of modern information
b- Realizable Value
It's option B. For all other options you require information.
According to IAS -2 inventory is valued at lower of cost net realizable value. The concept comes from Prudence and it requires exercising degree of caution under condition of uncertainty.
So according to law it should be recorded in such a manner
Expected Selling Price - Expected conversion Cost - Expected Selling Cost = Inventory Value
According to Conservatism approach Answer B)
The market price will not be more than NRV (Ceiling)
b->>>>>>>>>> Realizable Value
