Which of the Following Statements Best Describes Net Realizable Value

Multiple Choice

Which of the following statements best describes net realizable value when applying the LCM rule?

A) Net realizable value is the selling price less the costs necessary to sell the item.
B) Net realizable value is the selling price plus the costs necessary to sell the item.
C) Net realizable value is the selling price plus the normal profit margin.
D) Net realizable value is the selling price less the normal profit margin.