Randall Corp

question 4

Multiple Choice

Randall Corp. began operations on January 1, 2019, and uses FIFO to cost its inventory. Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income. Accordingly, the following information has been developed: Based upon the above information, a change to the average cost method in 2020 would result in pre-tax income for 2020 of

• A) $ 790,000.
• B) $ 860,000.
• C) $ 940,000.
• D) $ 980,000.

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Definitions:

Primary Group

A small social group whose members share close, personal, enduring relationships, characterized by strong emotional ties, warmth, and intimacy.

Example

A representative case or instance used to illustrate a rule, method, or condition; often used for clarification.

Stanley Milgram

A psychologist best known for his groundbreaking research on obedience to authority, highlighting the powerful influence of authority figures on individual actions.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms, values, or expectations.