Application of lower of cost and net -realisable (NRV) are very important in stock keeping.

Net Realizable Value is the estimated selling price in the ordinary course of business minus any cost to complete and to sell goods.

Application of lower of cost' and 'net-realisable value' (NRV) rule is importnant

lower of cost' and 'net-realisable value

Accounting -> Application of 'lower of cost' and 'net-realisable value' (NRV) rule Application of 'lower of cost' and 'net-realisable value' (NRV) rule This rule is applied to individual stock items. It is important that students can adequately define each of these terms. Below is an example of an application of that rule. Required Complete the following table by calculating value of stock on hand at the end of the period. Item Cost NRV Quantity Value Printers 450 490 10 4 500 Modems 150 120 6 720 Scanners 300 400 20 6 000 Total 11 220 The typing in bold is the solution to this question. Do not forget to include the total. You may be asked why the net realisable value for this brand of modem is lower than cost.

Very fruitful course. No question.

so true, sometimes we forget about technology increasing, and constantly changing, you may want to think before getting into this business, there is a huge chance to take.

What is an application of NRV Rule?

usefull

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