Janssen Company Has Old Inventory on Hand That Cost $24,000

question 144

Multiple Choice

Janssen Company has old inventory on hand that cost $24,000. Its scrap value is $32,000. The inventory could be sold for $80,000 if manufactured further at an additional cost of $24,000. What should Janssen do?

• A) Sell the inventory for $32,000 scrap value
• B) Dispose of the inventory to avoid any further decline in value
• C) Hold the inventory at its $24,000 cost
• D) Manufacture further and sell it for $80,000.

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Definitions:

Reinforcement Given

In behavioral psychology, a stimulus or reward that follows a behavior and increases the likelihood of that behavior being repeated.

Variable Time Interval

A scheduling method in operant conditioning where reinforcements are given after varying time intervals.

Variable Number

A quantity or element that may vary or change within the context of a situation or experiment.

Stimulus Discrimination

The learned ability to respond differently to similar stimuli based on their differences, significant in the context of conditioning.