Sampson Company's Accounting Records Show the Following for the Year

question 59

Multiple Choice

Sampson Company's accounting records show the following for the year ending on December 31, 2014. Using the periodic system, the cost of goods purchased is

• A) $330,210.
• B) $354,210.
• C) $358,610.
• D) $345,810.

---

Definitions:

Internalized

This term generally refers to the absorption of external effects or costs by the decision-maker, often in the context of environmental economics.

Coase Theorem

An economic theory stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.

External Costs

Costs generated by a production or consumption activity that are not borne by the producer or consumer but by society at large.