Which of the Following Statements Best Describes Net Realizable Value

question 22

Multiple Choice

Which of the following statements best describes net realizable value when applying the LCM rule?

• A)Net realizable value is the selling price less the costs necessary to sell the item.
• B)Net realizable value is the selling price plus the costs necessary to sell the item.
• C)Net realizable value is the selling price plus the normal profit margin.
• D)Net realizable value is the selling price less the normal profit margin.

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Definitions:

McGregor

Refers typically to theories X and Y developed by Douglas McGregor, emphasizing two different management styles where theory X is more authoritative, and theory Y is more participative.