Tang, IncSells Collectible Jewelry on Consignment from Various Manufacturers

question 44

Multiple Choice

Tang, Inc.sells collectible jewelry on consignment from various manufacturers.Additionally, Tang sells its own line of specialty jewelry manufactured in-house.On December 31, 2011, during Tang, Inc 's annual inventory count, an inexperienced new staff member included in Tang's ending inventory $350,000 worth of inventory held on consignment from Metcalf Associates.Which of the following is correct regarding the impact of this error on Tang's income statement and statement of financial position at December 31, 2011?

• A)Ending inventory is understated by $350,000.
• B)Retained earnings is overstated by $350,000.
• C)Cost of goods sold is overstated by $350,000.
• D)The financial statements are correctly stated.

Comprehend human cognitive biases and the tendency to find patterns in random data.

Understand the concept of self-serving bias and its distinction from other cognitive biases.

Evaluate the belief in personal control and its implications on behavior and perception.

Identify the possibility of bias in expert opinions and the limitations of expertise.

---

Definitions:

Management Tools

Various systems, software, practices, and methodologies that help in planning, executing, monitoring, and analyzing an organization's operations.

Test Marketing Techniques

Strategic approaches used by businesses to evaluate the market response to a product or service in a limited geographical area or demographically before a full-scale launch.

Market Research

The process of gathering, analyzing, and interpreting information about a market, including information about potential customers, competitors, and the industry, to support business decision-making.

General Mills Warm Delights

A line of single-serving microwaveable dessert products produced by General Mills, designed for quick and easy preparation.