Explain realizable value less than cost or cost greater than net realizable value?

Q: Contribution margin means

A: In the production there are many types of cost some cost change with volume but some do not change…

Q: Describe and apply the lower-of-cost-or-net realizable value rule.

A:

Q: Define the term capitalized cost?

A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…

Q: Year 2012 2013 2014 2015 60,000 15,000 45,000 6,000 90,000 17,000 67,500 8,500 30,000 7,500 22,500…

A: For every labor dollar spent, the approximate cost per meal  = Salary/Total meals served

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

Q: Understand and apply the lower-of-cost-or-net realizable value rule.

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Q: What is fundamental value or price?

A: Fundamental value is a measure of what an asset's worth. This gauge is acquired by methods for an…

Q: What is intrinsic value or price?

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: Cost method, Market method

A: There are different methods of pricing a product but the most common are on the basis of cost and…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: What is a joint cost? What is a separable cost?

A: Joint Cost: Joint cost is a cost accounting term, which is referred to common costs incurred in…

Q: What is Capitalized-Equivalent Cost?

A: Cost is the price of something that buyer pays to the seller to purchase that thing.

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: example of lower of cost or net realizable value and explain

A: The concept of lower of cost or net realizable value says that the amount of inventory should be…

Q: How useful is cost–benefit analysis?

A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…

Q: Explain an example of net realizable value.

A: Net realizable value:   Net realizable value is the net amount of receivables which a business…

Q: what is meant by Capitalized cost?

A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…

Q: Explain the term Divisible Profit.

A: Common stock: Common stock is the instrument used by the company for raising funds from the general…

Q: Explain how to calculate net realizable value.

A: Net realizable value refers to the total amount of money which a company will get from selling the…

Q: What is net present value? How does net preset value work?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: Are variable costs always relevant costs? Explain.

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Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.