Ending Inventory for Year 2 Using Variable Costing Would Be

question 8

Multiple Choice

Ending inventory for year 2 using variable costing would be

• A) $2,200
• B) $1,100
• C) $1,175
• D) $800

---

Definitions:

Deadweight Loss

signifies a loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Purely Competitive

A purely competitive market is one in which there are many buyers and sellers, all trading homogeneous products, with no single entity able to control the market price.

Market

A virtual or physical place where buyers and sellers come together to trade goods, services, or financial instruments.

Allocative Efficiency

A state of the economy in which resources are allocated in a way that maximizes the overall benefit to society, with goods and services produced at their highest-valued uses.