Question

short note on the principal methods of ascertaining the cost of inventory
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Answer 1

Answer:

there are three methods first method based on historical cost is made on a convention basis that is expected profits are not to be considered as possible roses are to be provided for hassas it is valid on the lowest of historical cost second method net realizable value third method replacement price value should say that replacement price value the term cost usually refers to designer the historical cost that is outlay of cash audit equality and the activation of particular item of inventory in other words it is the sum total of the price paid along with all expenditure and charges directly or indirectly insured in bringing inventory to extinct condition and location therefore in case of materials and supplies surprise state including pride and carriages represent their cost and sometimes a party of the total expenditure is includes in the case of work in progress however because it represents the sum total of direct material cost direct wages and direct expenses including manufacturing factory overhead