Denson Company Manufactures Computer Stands

question 28

Multiple Choice

Denson Company manufactures computer stands.What is the beginning balance of Finished Goods Inventory if Cost of Goods Sold is $107,000;the ending balance of Finished Goods Inventory is $20,000;and Cost of Goods Manufactured is $50,000 less than Cost of Goods Sold?

• A)$70,000
• B)$77,000
• C)$157,000
• D)$127,000

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Definitions:

Opportunity Cost

Opportunity cost represents the value of the next best alternative that must be foregone when making a decision, highlighting the trade-off between different choices.

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A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between the two goods.