When $10,000 of Inventory Is Purchased with a Three-Month Note

question 10

Multiple Choice

When $10,000 of inventory is purchased with a three-month note payable bearing 2% interest,the inventory has a total cost of

• A)$10,200.
• B)$10,000.
• C)$10,100.
• D)$9,900.

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Definitions:

Flexible Manufacturing

The direction of machinery by computers to adapt to different versions of similar operations.

Labor-Intensive

Describes industries or businesses that require a large amount of labor to produce goods or provide services, often resulting in higher labor costs.

Capital-Intensive

Refers to businesses or industries that require significant amounts of capital investment in machinery, equipment, or large-scale infrastructure to produce goods or services.