Question 1e
Marking Guide
| (i) | define net realisable value | |
| 1 mark for each element of definition | ||
| selling price | ||
| less estimated costs to completion, marketing, selling and distribution costs | ||
| maximum marks | 2 | |
| (ii) | four procedures | |
| up to 1 mark for stating procedure and up to 1 further mark for explanation, but maximum 8. | ||
| on sales price | ||
| on costs to completion | ||
| on selling and distribution cost | ||
| discussion with management | ||
| inventory provision | ||
| maximum marks | 8 |