The Calculation of Closing Inventory for a Finished Goods Inventory

question 5

Multiple Choice

The calculation of closing inventory for a finished goods inventory budget is:

• A) (opening balance plus sales of finished goods) less purchases.
• B) (opening balance plus purchases) plus cash sales of finished goods.
• C) (opening balance plus purchases) less sales of finished goods.
• D) none of the above.

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Definitions:

Mean Amount

The arithmetic average of a set of numbers, calculated by adding all the numbers and dividing by the total number of values.

Commute Time

The duration it takes for an individual to travel from their home to their place of work or study.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values tend to be close to the mean.

Quality Control

A process through which a business seeks to ensure that product quality is maintained or improved with either reduced or zero errors.