Karl's Keychain Company Produces Keychains That Sell for $1 Each

question 218

Multiple Choice

Karl's Keychain Company produces keychains that sell for $1 each. On January 1, 2015, the company had inventory of 8,000 keychains. During 2015, the company sold 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 9,000. What was the value of Karl's total production and inventory investment in 2015?

• A) production = $901,000; inventory investment = $1,000
• B) production = $900,000; inventory investment = $9,000
• C) production =$899,000; inventory investment = $1,000
• D) production = $891,000; inventory investment = $17,000

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Definitions:

Theoretical Rationality

A concept in philosophy and rationality studies that concerns the systematic and principled organization of knowledge and actions according to logical, methodical, and coherent principles.

Practical Rationality

The use of reason to address practical matters, focusing on achieving specific goals or meeting certain needs rather than on abstract principles.

Theoretical Rationality

Refers to the logical structuring of thoughts and actions based on theoretical knowledge and principles.

Metaphysical Logic

Philosophical reasoning that focuses on the nature of being, reality, and the universe beyond the physical or empirical.