Input Prices Affect the Firm's ________,And Output Prices Affect the Firm's

question 2

Multiple Choice

Input prices affect the firm's ________,and output prices affect the firm's ________.

• A) revenue; costs
• B) costs; costs
• C) costs; revenue
• D) revenue; revenue
• E) decisions in the short run but not in the long run; decisions in the long run but not in the short run

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Definitions:

Inventory Shrinkage

Loss of products between purchase from a supplier and sale, often due to theft, damage, or errors.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate periods.

Periodic Inventory System

A method of inventory valuation for financial reporting purposes where a physical count of inventory is performed at specific intervals, and cost of goods sold is calculated at the end of the accounting period.

Merchandise Purchased

The total cost of goods bought for resale during a specific accounting period.