Which of the Following Transactions Represents the Purchase of a Final

question 231

Multiple Choice

Which of the following transactions represents the purchase of a final good?

• A)Starbucks purchases coffee beans.
• B)Delta buys a new European-made jetliner.
• C)Apple computer buys computer processors from Intel.
• D)Your father buys a new John Deere riding lawn mower.

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Definitions:

Wholesale Price

The cost at which goods are sold to retailers by manufacturers or distributors before any retail markup.

Retail Price

The cost at which an item is sold to the general public by retailers.

Mark-up on Cost

The percent increase applied to the goods' cost price to cover overhead expenses and profit.

London Drugs

A Canadian retail store chain specializing in pharmaceuticals, electronics, cosmetics, and a range of household goods.