The Criders Company Has 12,000 Units of Obsolete Inventory

question 17

Short Answer

The Criders Company has 12,000 units of obsolete inventory. The units originally cost $6,000. The company can either sell them for scrap at $.20 per unit or they can invest $2,000 to be able to sell them at a price of $.60 per unit. With regard to this decision, relevant costs or benefits include: a. $6,000 only.
B) $2,000 and $.20 per unit only.
C) $.20 per unit, $.60 per unit, and $2,000.
D) $2,000 and $6,000 only.

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Definitions:

Pluralism

A condition or system in which two or more states, groups, principles, sources of authority, etc., coexist.

Average Age

The mean age of a particular group of individuals or entities, calculated by dividing the sum of their ages by the number of individuals.

Cost Argument

A principle suggesting that maintaining certain practices, such as equal employment opportunities, can reduce costs associated with turnover, absenteeism, and training by utilizing a larger, more diverse workforce.

Competitiveness

The ability of an individual or organization to compete in the market effectively, often by offering superior products, services, or conditions.