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Woody Plc sold inventory items to its subsidiary Buzz Lightyear Plc and had the following intercompany transactions:
Cost of inventory €300 000 sold for €375 000 for the year ended 30 June 2012.One third of the inventory items were sold by Buzz Lightyear Plc to external parties before the financial year end 30 June 2012.
Cost of inventory €100 000 sold for €75 000 for the year ended 30 June 2013.Half of the inventory items were sold by Buzz Lightyear Plc to external parties before the financial year end 30 June 2013.
Ignoring taxes,which of the following statements is correct with respect to this transaction only for the year ended 30 June 2013
Market Baskets
A collection of goods and services used as a standard way of tracking the cost of living or inflation over time.
Preferences
In economics, this refers to the ordering of alternatives based on their utility, showing the subjective tastes and choices of individuals.
Complete
Fully accomplished or having all necessary parts or steps.
Transitivity
Transitivity in decision making refers to the consistency among choices, where if option A is preferred over B and B over C, then A should be preferred over C.
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