The designated market value
A) is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.
B) should always be equal to net realizable value.
C) may sometimes exceed net realizable value.
D) should always be equal to net realizable value less a normal profit margin.

Question

Quizplus · Accepted Answer

The designated market value is determined as the middle value among the replacement cost, net realizable value, and net realizable value less a normal profit margin. This method ensures that the inventory is reported at a value that reflects current market conditions while avoiding extremes.

The Designated Market Value