Net Realisable Value of Inventories May Fall Below Cost for a Number

Net realisable value of inventories may fall below cost for a number of reasons including: I. $\quad$ Product obsolescence
II. $\quad$ Piysical deterioration of irventories
III. $\quad$ Arl increase in the expected replacernent costs of the irventories
IV. $\quad$ Arl increase in the estirnated costs of completion
V. $\quad$ An error in quartities purchased causing overstocking

A) I, II, IV and V only
B) I, IV and V only
C) II, III and IV only
D) I, II and V only

Correct Answer:

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