At the Beginning of the Year, Hinz Company Had an Inventory

question 62

Multiple Choice

At the beginning of the year, Hinz Company had an inventory of $400,000. During the year, the company purchased goods costing $1,600,000. If Hinz Company reported ending inventory of $600,000 and sales of $2,000,000, the company's cost of goods sold and gross profit rate must be

• A) $1,000,000 and 50%.
• B) $1,400,000 and 30%.
• C) $1,000,000 and 30%.
• D) $1,400,000 and 70%.

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Definitions:

Clear Rules

Refer to unambiguous, well-defined guidelines and standards that govern behavior and processes within an organization.

Operating Procedures

Established methods and protocols for conducting activities within an organization to achieve efficiency and quality output.

Span of Control

The number of subordinates a manager or leader can effectively oversee, control, or manage directly.

Geographic Design

A spatial arrangement or planning strategy that considers geographical factors, such as location and physical space, in its implementation.