In determining the liquidation value of inventories, it is not necessary to look at their composition.

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The composition of inventories is important in determining their liquidation value because different types of products have different market values and demand. For example, perishable goods may have a lower liquidation value than non-perishable goods due to their shorter shelf life. Similarly, products that are in high demand or have a limited supply may have a higher liquidation value. Therefore, it is necessary to look at the composition of inventories in order to accurately determine their liquidation value.

In Determining the Liquidation Value of Inventories, It Is Not