Vidyalelo
Commerce · Q722

Costing

Graduate and Post Graduate · Commerce · question 722

Q722

Net realizable value is added into separate costs to calculate

A.
split off costs
B.
final cost of direct labour
C.
final sales
Answer
D.
final costs

Answer: Option C

Solution

Answer: Option C
Solution:
Net realizable value is added into separate costs to calculate final sales. Net realizable value (NRV) is the value for which an asset can be sold, minus the estimated costs of selling or discarding the asset. The NRV is commonly used in the estimation of the value of ending inventory.