Chapter Seven- Inventories Flashcards
1
Q
Cost of Inventory
A
Cost of purchase, including delivery; cost of conversion including direct labour and other costs to bring the inventory to its present location and condition
2
Q
Inventories
A
Items which are held for sale in the ordinary course of business or in the process of production for such a sale
3
Q
Inventory Count
A
The process of counting each line of inventory and comparing that quantity to the inventory records
4
Q
Inventory Reconciliation
A
Comparison of the quantity of each item shown in the inventory records to the actual quantity counted
5
Q
Net Realisable Value (NRV)
A
The expected selling price of the item less any further costs to be incurred such as costs to completion and selling or distribution expenses
