Stephenson Company's Computer System Recently Crashed, Erasing Much of the Company's

question 46

Multiple Choice

Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data. $\begin{array}{lr}\text { Cost of Goods Sold } & \$ 380,000 \\\text { Work-in-Process Inventory, Beginning } & 30,000 \\\text { Work-in-Process Inventory, Ending } & 40,000 \\\text { Selling and Administrative Expense } & 50,000 \\\text { Finished Goods Inventory, Ending } & 15,000 \\\text { Finished Goods Inventory, Beginning } & ?\\\text { Direct Materials Purchased } & 171,000 \\\text { Factory Overhead Applied } & 112,000 \\\text { Operating Income } & 22,000 \\\text { Direct Materials Inventory, Beginning } & 18,000 \\\text { Direct Materials Inventory, Ending } & 6,000 \\\text { Cost of Goods Manufactured } & 340,000 \\\text { Direct Labor } & 55,000\end{array}$ The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of total manufacturing cost?

• A)$340,000.
• B)$350,000.
• C)$380,000.
• D)$395,000.

Understand the concept and goals of persuasion in marketing communications.

Explain the Persuasion Knowledge Model and its implications for consumer behavior.

Describe the impact of scarcity and martyrdom effect on consumer psychology.

Identify the components of the communications model and the role of feedback in effective communication.

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others.

Opportunity Costs

The cost of forgoing the next best alternative when choosing among multiple options, measuring the trade-off involved in any decision.

Opportunity Cost

The value of the best alternative forgone when a choice is made, representing the benefits one could have received by taking an alternative action.

Gains From Trade

The benefit that entities receive from engaging in voluntary trade, often resulting in better allocation of resources and increased efficiency.