Opera Corp

question 104

Multiple Choice

Opera Corp. uses the dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows: What is the 2013 inventory balance using dollar-value LIFO?

• A) $390,000.
• B) $371,424.
• C) $736,362.
• D) $810,000.

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Definitions:

Profits

The financial gain realized when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the activity.

MRP Curve

Short for Marginal Revenue Product curve, which represents the additional revenue a firm earns by employing one more unit of input, assuming other factors remain constant.

Imperfectly Competitive

Describes markets where the conditions necessary for perfect competition are not met, due to factors like monopolies, oligopolies, or monopolistic competition.

Purely Competitive

A type of market organization where there are many small-scale companies offering identical products, with no restrictions on entering or leaving the market.