When Valuing Raw Materials Inventory at Lower-Of-Cost-Or-Market, What Is the Meaning

question 83

Multiple Choice

When valuing raw materials inventory at lower-of-cost-or-market, what is the meaning of the term "market"?

• A) Net realizable value
• B) Net realizable value less a normal profit margin
• C) Current replacement cost
• D) Discounted present value

---

Definitions:

Diffusion of Responsibility

A sociopsychological phenomenon whereby a person is less likely to take responsibility for action or inaction when others are present.

Bystander Effect

The finding that people are less likely to offer help when they are in a group than when they are alone.

Pluralistic Ignorance

A psychological state where individuals mistakenly believe their thoughts, feelings, or behaviors are different from those of the group, often due to a lack of open communication.

Bystander Effect

A social psychological theory that suggests that individuals are less likely to offer help to a victim when other people are present, often due to a diffusion of responsibility.