Assume That the Client's Valuation of an Inventory Item Is

question 80

Multiple Choice

Assume that the client's valuation of an inventory item is $10 per unit for 1,000 units, using first-in, first-out (FIFO) . If the most recent acquisition of inventory was for 600 units at $10 per unit and the immediately preceding acquisition was for 700 units at $9 per unit, the inventory item is in error and it is

• A) understated $400.
• B) understated $300.
• C) overstated $400.
• D) overstated $700.

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Definitions:

Tuition

The fee for instruction, especially at a formal institution of learning.

Work Hours

The amount of time an individual spends performing tasks or duties for an employer during a given period.

Marginal Cost

The cost to produce one additional unit of a product or service.

Buffet

A meal consisting of various dishes set out on a table or sideboard from which guests can serve themselves.