You Are Relieved to Get a "C" in Economics, So

question 22

Multiple Choice

You are relieved to get a "C" in Economics, so you are surprised when your classmate is disappointed when she receives the same grade. Your assumption that she will feel as you do is

• A) fundamental attribution error.
• B) perceptual constancy.
• C) projection.
• D) self-serving bias.

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Definitions:

Merchandise Inventory

Items that a company intends to sell to customers that are held as assets on the balance sheet.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by using a cost-to-retail price ratio based on both beginning inventory and purchases during the period.

Ending Inventory

The total value of all inventory a company has available for sale at the end of an accounting period.