If $6,700 Was the Beginning Inventory, Purchases Were $12,000 and Sales

question 118

Multiple Choice

If $6,700 was the beginning inventory, purchases were $12,000 and sales were $6,000. How much was ending inventory last accounting period?

• A) $12,700
• B) $6,700
• C) $0
• D) $6,000

Grasp the definition and importance of marginal concepts in economics, including marginal revenue, marginal cost, and marginal benefit.

Calculate marginal revenue and understand its role in production and pricing decisions.

Calculate and understand the significance of average total costs, average variable costs, and fixed costs in the production process.

Distinguish between average cost and marginal cost and their implications for production and pricing strategies.

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Definitions:

Work in Process

Work in Process is inventory that includes goods in production but not yet completed, representing a stage between raw materials and finished goods.

Value-Added Cost

Costs that contribute to increasing the value of a product or service from the perspective of the customer, such as improvements in quality or features.

Theory of Constraints

A management philosophy focusing on identifying and managing the most significant limiting factor (constraint) that stands in the way of achieving a goal.

Bottlenecks

Points of congestion in a system where the actual or potential capacity is less than the demand, leading to delays or slowdowns.