An Overstatement of Ending Inventory in One Period Results in

question 81

Multiple Choice

An overstatement of ending inventory in one period results in

• A)no effect on profit of the next period.
• B)an overstatement of profit of the next period.
• C)an understatement of profit of the next period.
• D)an overstatement of the ending inventory of the next period.

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Definitions:

Consumer Demands

The desire, willingness, and ability of consumers to purchase goods and services at various price levels.

Market System

A market mechanism where the allocation of resources for investment, production, and distribution is driven by the forces of supply and demand, with the pricing of goods and services set freely within the market.

Minimize Cost

The process of finding the most efficient level of production, where the combination of inputs results in the lowest possible cost.

Unit of Output

The basic measure of productivity or product which is generated by a production process, operation, or project.