The Following Information Pertains to Stark Ltd What Is the Value of Ending Inventory Using the Variable

question 14

Multiple Choice

The following information pertains to Stark Ltd.: $\begin{array}{lr}\text { Beginning inventory } & 0 \text { units } \\\text { Ending inventory } & 5,000 \text { units } \\\text { Direct labour per unit } & £ 20 \\\text { Direct materials per unit } & 16 \\\text { Variable overhead per unit } & 4 \\\text { Fixed overhead per unit } & 10 \\\text { Variable selling costs per unit } & 12 \\\text { Fixed selling costs per unit } & 16\end{array}$ What is the value of ending inventory using the variable costing method?

• A)£310,000
• B)£250,000
• C)£200,000
• D)£390,000

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Definitions:

Behavioral Contrast

A phenomenon where the rate of response to a stimulus changes significantly due to the introduction of a reinforcement or punishment to another stimulus.

Discrimination Learning

A cognitive process where an individual learns to respond differently to various stimuli that are not identical.

Excitatory Generalization

The process whereby a conditioned response is observed not only to the conditioned stimulus but also to stimuli that are similar to the conditioned stimulus.

Inhibitory Generalization

Inhibitory generalization refers to the process whereby learned inhibition to a certain stimulus is generalized to other similar stimuli.