In 2014,Richard's Department Store Changes Its Inventory Method from FIFO

question 81

Essay

In 2014,Richard's Department Store changes its inventory method from FIFO to LIFO.Richard's uses the simplified LIFO method.Richard's year-end inventory under FIFO is as follows: 2013 - $300,000; 2014 - $350,000.The 2013 price index is 110% and the 2014 index is 120%.The 2014 layer is
A)$19,097.
B)$20,833.
C)$22,727.
D)$50,000.

• A)$19,097.
• B)$20,833.
• C)$22,727.
• D)$50,000.

---

Definitions:

Public Good

A product or service that is non-excludable and non-rivalrous, meaning it can be used by many people without depleting the resource or preventing others from using it.

Demand-Side Market Failure

A situation where the demand curve does not reflect consumers' full willingness to pay for a good or service, often due to externalities or public goods.

Paradox Of Voting

A situation where the rational choice for an individual is not to vote because their single vote rarely affects the outcome, yet if everyone follows this logic, it undermines the democratic process.

Marginal Benefits

The additional satisfaction or utility gained from consuming or producing one more unit of a good or service.