Question 1

a) in arriving at the net realizable value of inventories, settlement discounts must be deducted from the expected selling price. Correct or Incorrect

b) The item is becoming obsolete and can cause the net realizable value of the respective item of inventory to be lower than its cost. Correct or Incorrect

c) It is permitted to value finished goods inventories at materials plus labour cost only without adding the production overheads. Correct or Incorrect