Match the Terms with the Definitions

question 78

Multiple Choice

Match the terms with the definitions.
-A variation of the gross profit method that is used by many retail businesses, to estimate the cost of goods sold and ending inventory.

• A)average cost
• B)weighted-average method
• C)consignee
• D)consigned goods
• E)specific identification method
• F)retail method
• G)cost
• H)physical inventory
• I)periodic inventory system
• J)in transit
• K)inventory sheet
• L)natural business year
• M)lower-of-cost-or-market method

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profitability of an enterprise beyond basic financial profit.

Monopoly

A market structure characterized by a single supplier controlling all the supply of a particular good or service.

Economic Loss

A situation where total costs exceed total revenues, leading to a negative profit.

Regulated Monopolist

A monopoly that operates under government regulation aiming to control pricing, supply, and standards of service to prevent exploitation of monopoly power.