The Use of a "Replacement Cost" Definition of "Market" Is

Multiple Choice

The use of a "replacement cost" definition of "market" is based on the assumption that

A) a decline in an item's replacement cost results in a decline in its selling price.
B) prices will fall in the same proportion as input costs fall.
C) replacement cost is appropriate for all situations.
D) using "net realizable value less a normal profit margin" will arbitrarily shift profits from one period to another.