Use the Following Information for Questions

question 61

Multiple Choice

Use the following information for questions.
Tang Inc.uses the retail inventory method.The following information is available for the current year:
-If the ending inventory is to be valued at approximately lower of average cost and market, the calculation of the cost ratio should be based on cost and retail of

• A)$450,000 and $645,000.
• B)$450,000 and $642,000.
• C)$559,000 and $825,000.
• D)$567,000 and $828,000.

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Definitions:

Income Increases

Situations or events that lead to a rise in the amount of money received by individuals or entities, potentially affecting consumption and saving behaviors.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding other relevant factors constant.

Economic Variables

Quantitative measures that represent a characteristic of the economy or a part of the economy, influencing or describing economic activity.

Positive Economic Analysis

An objective approach to economics that focuses on describing and explaining economic phenomena without making normative judgments.