Suppose That Nine Bakeries Each Tried to Sell Their Products

question 232

Multiple Choice

Suppose that nine bakeries each tried to sell their products directly to eight supermarkets. The total number of exchange relationships that would be established is

• A) 22.
• B) 56.
• C) 72.
• D) 96.

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Definitions:

Inventory costing method

A system or technique used by companies to assign costs to inventory and goods sold; common methods include FIFO, LIFO, and average cost.

Ending inventory

The total value of goods available for sale at the end of an accounting period after all sales transactions have been accounted for.

Current prices

Prices at which goods and services are being sold in the present market, reflecting the current economic conditions.

LIFO

The "last in, first out" method of inventory valuation, where the most recently acquired items are considered sold first, used in periods of inflation to increase cost of goods sold and reduce taxes.