ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 69

6. A reason for valuing inventory at net realizable value
is that sometimes it is too difficult to obtain the cost figures.

7. In a basket purchase, the cost of the individual assets
acquired is determined on the basis of their relative sales
value.

8. A basket purchase occurs when a company agrees to
buy inventory weeks or months in advance.