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cost or nrv ehich ever is lower
Answer is D : Cost price of market price whichever is lower..
d. cost or market price which is lower As per Accountinf Standards
Is is valued at lower of cost or NRV(Net Reliasable Value).
The correct answer is No. D: Cost Price or Market Price whichever is lower
Answer D is correct
The inventory must be valued at cost or market value what ever is lower.
D is the answer
D. COST OR MARKET PRICE(NET REALISABLE VALUE) WHICH IS LOWER
The prudent practice and as per Accounting Standard, Inventory should be valued at Cost or Market price whichever is lower.
But for the purpose of Management reporting, in case of there is increase in valuation of Stock, then it can be termed as Opportunity Cost and the quantum of such gain should be reported. e.g A company having "X" Material of1000 Pcs in stock, Cost price being10 per unit and market price12 per unit. In this case, For accounting purpose , the inventory will be valued at10000.00 and for Management reporting purpose, inventory will be valued at10000.00 and unrelized gain will be2000.
d. Cost Price or Market Price whichever is lower.
