NRV

[mojomojo]

NRV
"The estimated selling price a product less any costs incurred in the marketing, selling and distribution of the item."

Can someone tell me what goes under marketing?, what does under selling?, and what goes under distrubtion?



and also can someone explain "material"? It's not mentioned in the cambridge text book.

thankssss  :smitten:

[pooshwaltzer]

Material is the cost base of inventory prior to it being brought to a state of readiness for sale. EG. forestry assets which are assets under inventory but the sale of which requires harvest, treatment and transportation.

Extending tree example, the lumber mill puts out an Advert in the local papers for a preset auction to sell their harvest. An auctioneer is sourced to conduct sale and an insurance brokerage house is engaged to insure wares in transit which is contracted out to rail company. Ad = mktg, Auctioneer = selling, rail + underwriter = distri