Use the Following Information for Questions
the Following Data

question 9

Multiple Choice

Use the following information for questions
The following data concerning the retail inventory method are taken from the financial records of Stone Company. $\begin{array}{lcc}&\text { Cost } & \text { Retail }\\\hline\text { Beginning inventory } & \$ 49,000 & \$ 70,000 \\\text { Purchases } & 224,000 & 320,000 \\\text { Freight-in } & 6,000 & - \\\text { Net markups } & - & 20,000 \\\text { Net markdowns } & - & 14,000 \\\text { Sales } & - & 336,000\end{array}$
-If the ending inventory is to be valued at approximately the lower of cost or market, the calculation of the cost to retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively of

• A)$279,000 and $410,000.
• B)$279,000 and $396,000.
• C)$279,000 and $390,000.
• D)$273,000 and $390,000.

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Definitions:

Operating Inefficiently

Conducting business in a manner that does not maximize output or profits relative to input and resources.

Technological Advance

The development and application of innovative tools, machines, systems, and methods to improve processes, productivity, and efficiency.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods or services that can be produced with a fixed amount of resources.

Opportunity Cost

The price paid for not selecting the immediate alternative choice while deciding.