Karl's Keychain Company Produces Keychains That Sell in Its Stores

question 290

Multiple Choice

Karl's Keychain Company produces keychains that sell in its stores for $1 each. On January 1, 2015, the company had inventory of 10,000 keychains. During 2015, the company produced 900,000 keychains. At the end of the business year on December 31, 2015, the company's inventory of keychains was 8,000. What was the value of Karl's inventory investment in 2015?

• A) $8,000
• B) -$2,000
• C) $18,000
• D) $898,000

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony in decision-making results in an irrational or dysfunctional decision outcome.

Internal Auditors

Professionals who conduct audits within an organization to assess the effectiveness, efficiency, and compliance of its operations, processes, and controls.

Sub-Teams

Smaller, specialized groups formed within a larger team to focus on specific tasks or objectives, contributing to more efficient project management.

Free-Riding

Taking advantage of a collective resource or benefit without adequately contributing to it, often leading to issues in group dynamics and cooperation.