Which of the Following Values Is Considered the Market Value

question 44

Multiple Choice

Which of the following values is considered the market value when valuing inventory at lower-of-cost-or-market under U.S.GAAP?

• 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

Determine the total fixed manufacturing cost.

Estimate total monthly fixed selling and administrative expenses.

Calculate the total contribution margin.

Identify and predict costs based on different levels of activity within the relevant range.

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Definitions:

Inhibitions

The process of holding back or restraining behaviors, emotions, or impulses.

Foot-In-The-Door Phenomenon

A compliance tactic that involves getting a person to agree to a large request by first setting them up by having that person agree to a modest request.

Cognitive Dissonance

The mental discomfort experienced when holding two or more contradictory beliefs, values, or ideas simultaneously.

Attitudes

Psychological tendencies expressed by evaluating particular entities with some degree of favor or disfavor.