Refer to the Information Provided in Figure 20

question 259

Multiple Choice

Refer to the information provided in Figure 20.1 below to answer the question(s) that follow. Figure 20.1
-Refer to Figure 20.1. The opportunity cost of producing a bushel of alfalfa in the United States is

• A) half a bushel of soybeans.
• B) 1 bushel of soybeans.
• C) 2 bushels of soybeans.
• D) 300 bushels of soybeans.

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Definitions:

Cost-to-retail Ratio

A method used to estimate the value of ending inventory based on the ratio of the cost of goods available for sale to the retail price of those goods.

Ending Inventory

The worth of products ready for sale at the close of an accounting cycle, determined by adding the initial inventory and purchases, then subtracting the cost of goods sold.

Retail Inventory Method

An accounting method used to estimate inventory value by calculating the cost to retail price ratio.

Cost To Retail Ratio

A method used in retail to calculate inventory value by comparing the cost of goods to their retail price.