Figure 7-4
the Following Information Pertains to Stark Ltd -Refer to Figure 7-4

question 42

Multiple Choice

Figure 7-4
The following information pertains to Stark Ltd.:
$$\begin{array} { l r } \text { Beginning inventory } & 0 \text { units } \\\text { Ending inventory } & 5,000 \text { units } \\\text { Direct labour per unit } & £ 20 \\\text { Direct materials per unit } & 16 \\\text { Variable overhead per unit } & 4 \\\text { Fixed overhead per unit } & 10 \\\text { Variable selling costs per unit } & 12 \\\text { Fixed selling costs per unit } & 16\end{array}$$
-Refer to Figure 7-4. What is the value of ending inventory using the absorption costing method?

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

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Definitions:

Gifted

Having exceptional talent or natural ability in one or more areas of intelligence.

IQ

Intelligence quotient, a measure of a person's intellectual abilities in relation to the average performance of others in their age group.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical.

Creative Intelligence

Involves the ability to deal with new and different concepts and to come up with innovative solutions to problems.