Cinnamon Buns Co

question 28

Multiple Choice

Cinnamon Buns Co. (CBC) started 2018 with $52,000 of merchandise on hand. During 2018, $280,000 in merchandise was purchased on account with credit terms of 2/10, n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $9,000. Merchandise with an invoice amount of $4,000 was returned for credit. Cost of goods sold for the year was $316,000. CBC uses a perpetual inventory system.
- Assuming CBC uses the gross method to record purchases, ending inventory would be:

• A) $6,480.
• B) $15,400.
• C) $15,480.
• D) $21,000.

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Definitions:

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Just Noticeable Difference (jnd)

The minimum amount by which stimulus intensity must be changed in order to produce a noticeable variation in sensory experience.

Psychophysiological Judgment

A process of evaluating psychological phenomena through physiological responses.

Signal Detection Task

A psychological test that measures the ability to differentiate between information-bearing patterns and random patterns that distract from the information.