Octagonal Company Has the Following Information for 2018 There Were No Beginning Inventories

question 135

Multiple Choice

Octagonal Company has the following information for 2018: $\begin{array}{lr}\text { Selling price } & \$ 150 \text { per unit } \\\text { Variable production costs } & \$ 40 \text { per unit produced } \\\text { Variable selling and admin. expenses } & \$ 16 \text { per unit sold } \\\text { Fixed production costs } & \$ 200,000 \\\text { Fixed selling and admin. expenses } & \$ 140,000 \\\text { Units produced } & 10,000 \text { units } \\\text { Units sold } & 8,000 \text { units }\end{array}$ There were no beginning inventories. What is the cost of ending inventory for Octagonal using the variable costing method?

• A)$80,000
• B)$180,000
• C)$120,000
• D)$300,000

Understand the impact of government policies on R&D risk-taking behavior.

Understand the concept of moral hazard, including its causes and consequences.

Differentiate between moral hazard and adverse selection.

Identify solutions to mitigate moral hazard in various contexts, such as insurance and employment.

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Definitions:

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An approach in psychotherapy and counseling that emphasizes understanding clients' cultural backgrounds to provide effective and appropriate treatment.

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Automatic Thoughts

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