Liberty, Inc

question 149

Multiple Choice

Liberty, Inc. has the following list of inventory:
Under specific-identification, what is Liberty's ending inventory if ICF and CRD are not sold during the current period?

• A)$34,294
• B)$40,643
• C)$34,023
• D)$51,409

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Definitions:

Excess Capacity

The situation where a firm or economy can produce more goods or services than currently produced, indicating under-utilization of resources.

Marginal Costs

The additional cost incurred by producing one more unit of a product, which can vary as production scales.

Diseconomies of Scale

A situation where an increase in production leads to higher average costs for firms, contrary to economies of scale.

ATC

Average Total Cost, the total cost divided by the quantity of output produced; it's a measure of per-unit production cost.