Use the Following Information for Questions 130 and 131

question 23

Multiple Choice

Use the following information for questions 130 and 131.
Eaton Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2014:
-Assuming stable prices (no change in the price index during 2014) , what is the cost of Eaton's inventory at December 31, 2014?

• A) $256,200.
• B) $276,200.
• C) $272,000.
• D) $264,600.

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Definitions:

Cost Behaviours

Describes how different types of costs change or remain constant with variations in business operations' volume or scale.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Selling Expenses

Expenditures that change in direct correlation with the amount of sales, like commission fees and delivery costs.

Fixed Selling Expenses

Costs related to selling that do not change with the level of sales, such as salaries of sales staff and rent for sales space.