The Following Questions Refer to the Table Below

question 3

Multiple Choice

The Following Questions Refer to the table below. The cost of each police officer is $20,000; the cost of each patrol car is $10,000.
-The total benefit of hiring three police officers is

• A)$18,000
• B)$48,000
• C)$60,000
• D)$148,000
• E)$249,000

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that are becoming the global standard for the preparation of public company financial statements.

GAAP

Generally Accepted Accounting Principles; a collection of commonly-followed accounting rules and standards for financial reporting.

Accounting For Inventories

The process of tracking and managing the goods a company holds for the purpose of sale or production, including valuation and cost determination.

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real time through continuous updates to inventory accounts.