Masterlink Co

question 129

Multiple Choice

Masterlink Co., in applying the lower of cost or market method, reports its inventory at net realizable value. Which of the following statements is correct?

• A) NRV is greater than replacement cost.
• B) Cost is less than net realizable value.
• C) Cost is greater than net realizable value.
• D) Cost is less than NRV minus a normal profit margin.

---

Definitions:

Cultural Fairness

Involves recognizing and respecting the differences across cultures and ensuring equal opportunities and fairness for people from all cultural backgrounds.

Inferred Quality

A perceived attribute or characteristic of a product or service, deduced from available information rather than direct experience.

Participant Observer

A research method in which the investigator actively engages in the community or group being studied, while also maintaining a degree of distance to observe their behaviors and interactions.

Overload

The state of being overwhelmed by too many demands, information, or responsibilities, leading to stress or decreased functioning.