Under the LCNRV Approach, the Net Realizable Value Is Defined

question 95

Multiple Choice

Under the LCNRV approach, the net realizable value is defined as

• A) FIFO cost.
• B) LIFO cost.
• C) the net amount that a company expects to realize from a sale.
• D) selling price.

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Definitions:

Coercive

Employing force or intimidation to obtain compliance or control over others.

Instrumental Compliance

Following rules or guidelines not out of agreement or belief but as a means to achieve a certain goal or reward.

Imitates

To take or follow as a model; to replicate someone’s behavior or actions.

Resistance

Opposition or refusal to accept or comply with changes, policies, or practices.