Which of the Following Values Is Considered the Market Value

question 93

Multiple Choice

Which of the following values is considered the market value when valuing inventory at lower-of-cost-or-market?

• A)sales price less the company's normal mark-up percentage
• B)current replacement cost
• C)cost plus the company's normal mark-up percentage
• D)historic cost

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Definitions:

Unit-Level

Activities or costs that vary with each unit of production, such as materials and direct labor.

Batch-Level

Activities or costs that are incurred for each batch of products rather than for each unit, affecting multiple units of a product at one time.

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.

Sales Price

The amount a customer pays to purchase a good or service.