If a Mining Company Extracts 1,500,000 Tonnes in a Period

question 168

Multiple Choice

If a mining company extracts 1,500,000 tonnes in a period but only sells 1,200,000 tonnes,

• A) accumulated depreciation on the mine is based on the 1,200,000 tonnes.
• B) depreciation included in cost of goods sold is based on the 1,500,000 tonnes extracted.
• C) depreciation included in cost of goods sold is based on the 1,200,000 tonnes extracted and sold.
• D) a separate accumulated depreciation account is set up to record depreciation on the 300,000 tonnes extracted but not sold.

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Definitions:

Promotional Tools

Promotional tools are techniques and methods used to communicate with the target market, increase awareness, and influence the perceptions and behaviors of potential customers.

Product Characteristics

The attributes, features, or qualities that define a product and influence consumer decisions.

Purchase Decision Process

The sequence of steps consumers go through in making a decision to buy a product or service, typically including problem recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavior.

Promotional Mix

The combination of advertising, public relations, sales promotion, personal selling, and direct marketing strategies used to reach target markets.