Automobile Audio Has the Following Inventory Data: a Physical

question 185

Multiple Choice

Automobile Audio has the following inventory data: A physical count of merchandise inventory on November 30 reveals that there are 100 units on hand. Ending inventory under FIFO is

• A) $438
• B) $846
• C) $421
• D) $863

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Definitions:

Fixed Component

The part of total costs in a business that remains constant regardless of the level of production or business activity.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the vertical distances of the points from the line.

Units Produced

The total quantity of finished goods a company manufactures in a specific period.

Fixed Component

A cost or portion of cost that remains unchanged regardless of the level of output or activity.