Duke Company Had the Following Data Available Direct Materials Inventory Increased by _____

question 28

Multiple Choice

Duke Company had the following data available: $\begin{array}{ll}\text { Direct materials purchased on account } & \$ 74,000 \\\text { Direct materi al s requisitioned } & \$ 44,000 \\\text { Payment for direct materials } & \$ 70,000\end{array}$ Direct materials inventory increased by _____.

• A)$70,000
• B)$41,000
• C)$30,000
• D)$74,000

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Definitions:

Wages

Payments made to laborers or employees for their work or services, typically provided on an hourly, daily, or piecework basis.

Pauper Labor Fallacy

The incorrect assumption that lower production costs in countries with cheaper labor will always harm the economy of wealthier countries by taking away jobs.

Comparative Advantage

The ability of an individual or country to produce a certain good or service at a lower opportunity cost than others.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than competitors.