Remington Company Sells Product 1976NLC for $40 Per Unit

question 26

Multiple Choice

Remington Company sells product 1976NLC for $40 per unit.The cost of one unit of 1976NLC is $36, and the replacement cost is $34.The estimated cost to dispose of a unit is $8, and the normal profit is 40%.At what amount per unit should product 1976NLC be reported, applying lower-of-cost-or-market?

• A)$16.
• B)$32.
• C)$34.
• D)$36.

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Definitions:

Pragnanz

A principle from Gestalt psychology that suggests people will perceive and interpret ambiguous or complex images as the simplest form(s) possible.

False Alarm

An instance where a warning or signal is given for a danger or issue that does not actually exist.

Subliminal Perception

The process by which stimuli presented below the threshold of conscious awareness can influence thoughts, feelings, or actions, despite the individual being unaware of the stimuli.

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli over time, allowing organisms to focus on changes in their environment.