If a Computer Retailer Has 20 Computers at the Beginning

question 120

Multiple Choice

If a computer retailer has 20 computers at the beginning of the month, receives an additional 35 computers during the month, and sells no computers during the month, the retailer's inventory investment for that month would be

• A)minus 35 computers.
• B)plus 20 computers.
• C)minus 20 computers.
• D)plus 35 computers.
• E)plus 55 computers.

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Definitions:

Homogeneous

Describing products or materials that are uniform in composition or character; identical items with no variance.

Conversion

The process of changing resources or inputs into outputs such as goods or services, often referring to the labor and overhead costs associated with manufacturing.

Direct Materials

Raw materials that are directly incorporated into a finished product and can be directly allocated to that product.

Abnormal Spoilage

Waste or defects in the manufacturing process that exceed the normal or expected rate of spoilage, often resulting in additional costs for a company.