--%>
Assignment Help - homework help

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 : Categories under budgets are divide

    Write down the chief categories under which budgets are divided?

    		•
  • Q : Freedmens Bureau What did Freedmen’s

    What did Freedmen’s Bureau do?

    		•
  • Q : Characteristics of Dual currency bonds

    State the characteristics of the Dual currency bonds market instrument.

    		•
  • Q : Capitalize earnings To transfer amounts

    To transfer amounts from retained earnings to contributed capital through stock dividends. The effect is to decrease retained earning and increase the stock account. Stock dividends also permanently retain the earnings in the corporation by moving it out of the retain

    		•
  • Q : Asian firms building the production

    Since NAFTA was developed, several Asian firms particularly those from the Korea and Japan has made the extensive investments in the Mexico. Why do you think these Asian firms decided to build the production facilities in the Mexico?

    		•
  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

    		•
  • Q : Average Profit Method in goodwill

    Average Profit Method: (Goodwill method): The profit earned by an organization throughout previous accounting periods on an average basis is termed as average profit. Goodwill is computed on the basis of average profit due to prospect expectations of

    		•
  • Q : Explain Agricultural business Explain

    Explain the term Agricultural business in term of Accounting?

    		•
  • Q : Goal programming model Write an article

    Write an article on Goal programming model to address the selection of the best group of quality control instruments in designing a quality control system for service organizations.

    		•
  • Q : Controlling the translation exposure It

    It is, normally, not possible to fully remove both the translation exposure and transaction exposure.  In some cases, eradication of one exposure will also eliminate the other.  However in other cases, removal of one exposure really creates the other. 

    		•