Accounting MCQ Questions and Solutions with Explanations | Commerce

Answer: Option B

NRV or net realizable value of inventory is the expected selling price or market value less Expenses necessary to complete sale. Net realizable value is generally equal to the selling price of the inventory goods less the selling costs (completion and disposal).

Answer: Option B

Under Standard cost method of inventory costing, a pre-determined cost is assigned to all items of inventory. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the "should be" cost. Standard costs are often an integral part of a manufacturer's annual profit plan and operating budgets.

Answer: Option A

Term 'Credit' means Receiving of benefits by the business. The terms which indicate when payment is due for sales made on account (or credit).