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:

Termination

The process or act of bringing something to an end or being brought to an end, such as employment or a medical treatment regimen.

Active Listening

A way of listening and responding to another person that improves mutual understanding, involving full attention and engagement with the speaker.

SOLER

An acronym for a communication technique emphasizing attentive listening and engagement: Sit squarely, Open posture, Lean towards the other, Eye contact, and Relax.

Perceptual Biases

The tendency to have skewed perceptions or judgments influenced by personal preferences, experiences, or emotions, often leading to inaccuracies in understanding or decision-making.