Historical Cost of Inventory

What is the Historical Cost of Inventory?

E

Expert

Verified

Historical Cost of Inventory: Historical cost of inventory signifies the buying cost of inventory. As per rule, we compute value of inventory on the basis of historical cost and market cost which ever will be low. For illustration, you are wholesaler  you had purchased inventory at the cost of $ 100 but now, similar inventory, you and other wholesaler are purchasing on $ 90. Therefore, net realizable value is less than the historical cost. Therefore we will compute inventory at $90.

   Related Questions in Financial Accounting

  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

  • Q : What is Subsidiary bank State what is

    State what is meant by Subsidiary bank.

  • Q : Backward and forward internalization

    Discuss and compare the backward vs. forward internalization.

  • Q : Progressives The progressives were

    The progressives were fascinated in “making people better.” What types of things were they fascinated in changing and who were they aiming their changes at?

  • Q : Creatives and Suites What happens when

    What happens when creativity based on individual exceptionalism has evolved as part of the orthodoxy of Western managerial practice is applied within a creative business organisation in the business of “symbolic production&rdquo

  • Q : Comprehensive Project Please help me in

    Please help me in solving this requirement

  • Q : Case study of an economic and labour

    The woman in the dark suit (serious women always wear black suits) leafed through the papers on her desk. She was a fund manager and she was nearing the deadline for an investment decision by one of her leading clients, who wanted to invest in sovereign bonds in a dev

  • Q : Explain Gross margin Explain Gross

    Explain Gross margin with their appropriate formulas?

  • Q : Accounting Required parts are clearly

    Required parts are clearly describes at the end of the questions and additional resource contains the journal article related to question three.. Approx 2000 word assignment.. First Question is of not more than 1000 words to make memorandum and its example is given at end of assignment and require

  • Q : Accountancy Accountancy is the process

    Accountancy is the process of communicating financial information about a business entity to users such as shareholder and manager. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in s

©TutorsGlobe All rights reserved 2022-2023.