A Company Just Starting in Business Purchased Three Merchandise Inventory

question 28

Multiple Choice

A company just starting in business purchased three merchandise inventory items at the following prices.First purchase $80; Second purchase $95; Third purchase $85.If the company sold two units for a total of $270 and used FIFO costing, the gross profit for the period would be

• A)$95.
• B)$105.
• C)$90.
• D)$80.

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Definitions:

Career Demanding

A situation or profession that requires a high level of commitment, effort, and possibly sacrifices in terms of time and energy.

Fundamental Attribution Error

A common cognitive bias where people tend to overemphasize individual personality or dispositional factors and underestimate situational factors when explaining others' behaviors.

Relationship

An emotional or other connection between people, whether personal, professional, or familial, characterized by varying degrees of intimacy, commitment, and duration.

Active Perception

The process in which the perceiver actively engages in selecting, organizing, and interpreting stimuli.