Concerning Application of the Lower of Cost or Market Method

question 117

Multiple Choice

Concerning application of the lower of cost or market method under either the LIFO or retail inventory method, which one of the following statements is true regarding the constraints on market value?

• A) The upper constraint is estimated selling price less costs of completion and disposal.
• B) The lower constraint is net realizable value less costs of completion and disposal.
• C) The lower constraint is estimated selling price less a normal profit margin.
• D) The upper constraint is estimated selling price less costs of completion and disposal and a normal profit margin.

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Definitions:

Interactive Software

Software designed to respond to user inputs or other real-time actions.

Immediate Reinforcement

The provision of a reward or punishment immediately following a behavior, increasing the likelihood of that behavior being repeated in the future.

Observational Learning

A learning process through watching others, retaining the information, and then later replicating the behaviors that were observed.

Shaping

A process in operant conditioning involving the reinforcement of successive approximations of a desired behavior to teach a new behavior.