Net Realizable Value Refers to

question 229

Multiple Choice

Net realizable value refers to

• A) the net amount the company expects to realize from the sale.
• B) the selling price.
• C) the cost to replace the item.
• D) the gross profit realized from the sale.

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Definitions:

Hiring Labor

The process of employing people to perform work or services for wages or salary.

Optimum Resource Mix

The combination of inputs that allows a firm to produce output at the lowest possible cost.

Wage Rate

The amount of money paid to an employee per unit of time, often hourly or annually, for their work or services.

MRP of Labor

Marginal Revenue Product of Labor, which measures the change in total revenue that results from employing one additional unit of labor.