Tamarack Co

question 34

Multiple Choice

Tamarack Co.prepares its estimate of LCM using the net realizable value.Inventory item 101 cost $45 and its current replacement cost is $50.The item is currently selling in the market for $55 and selling costs are estimated to be $6.Tamarack expects to earn a profit of $4 on the sale of this item.In its year-end financial statements,Tamarack Co.should value this item at

• A)$50.
• B)$45.
• C)$49.
• D)$55.

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Definitions:

Social Loafing Effect

identifies the tendency for individuals to exert less effort when working in groups than when working alone, due to perceived diffusion of responsibility.

Individual Work

refers to tasks or projects completed by a single person, focusing on personal responsibility and autonomy in achieving objectives.

Team Creativity

The collective ability of a team to generate novel and useful ideas or solutions.

Kohler Effect

The phenomenon where less capable members of a group perform better when working in a team than they would on their own, due to the motivation of not wanting to let the group down.