Professor McDevey Has Finally Achieved His Lifelong Goal of Developing

question 29

Short Answer

Professor McDevey has finally achieved his lifelong goal of developing McDevey's Reading Achievement Test. As a publisher, you are concerned with the fact that the professor normed his instrument on youngsters living in a university town. Why might a university town not be representative of the U.S. population at large? What factors will you consider while critically evaluating this instrument?

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Definitions:

Net Realizable Value

The estimated selling price of goods, minus the costs of their completion and costs necessary to make the sale.

Market Value

Market value is the current price at which an asset or service can be bought or sold in a marketplace.

Ending Inventory

The total value of all merchandise or goods held by a company at the end of an accounting period, which has not been sold.

Allowance Method

An accounting technique used to account for bad debts, where companies estimate uncollectible accounts receivable and record them as an allowance for doubtful accounts.