Which of the Following Is False Regarding Net Realizable Value

question 52

Multiple Choice

Which of the following is false regarding net realizable value (NRV) ?

• A) it is better to use a product's market value at the split-off point than its estimated NRV
• B) the estimated NRV at the split-off point is calculated by taking the sales value after further processing and deducting additional processing costs
• C) NRV is the estimated selling price after processing the product beyond the split-off point.
• D) the constant NRV method uses an identical gross-margin percentage for each product to allocate joint costs

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Definitions:

Sanctioned Ends

Officially approved or recognized goals or outcomes that are considered appropriate or desirable within a given context.

Sanctioned Means

Approved or accepted methods and procedures for achieving goals within a societal or organizational context.

Political Network

The web of relationships among individuals in an organization that are used to gain influence, share information, and achieve objectives through political means.

Highly Substitutable

Referring to goods or services that can be easily replaced or exchanged with others of similar value or function.