Final answer:
Designated market value is the lower of replacement cost or net realizable value less a normal profit margin.
Step-by-step explanation:
The statement in the question is true. Designated market value is the lower of replacement cost or net realizable value less a normal profit margin. This means that when determining the market value of an asset, you would consider the lower value between its replacement cost and the net realizable value minus the normal profit margin.
For example, let's say you have a product with a replacement cost of $100 and a net realizable value (after deducting normal profit margin) of $80. In this case, the designated market value would be $80 (the lower value between the replacement cost and net realizable value minus normal profit margin).