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Inventories are valued at lower of cost and NRV
My question related to the NRV (Selling price- cost of conversion- cost to make sale) aspect of inventory valuation.
according to the PYQ answer for Warden Co P2 June 2007, warehouse storage cost is not included in the cost to sell, because it is incurred regardless of how long inventory is held and *not necessarily* incurred to affect the sale.
what are examples of circumstances where it will be recognized as cost to sell?
in addition to the question above,
based on my understanding, trade discount will be deducted against the estimated selling price.
what about settlement discount? will it be ignored when calculating the NRV?
i apologize for the lengthy question. Thank you for you time.
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