Given the Information in the Table Below,find Inventory Investment for 2007

question 44

Short Answer

Given the information in the table below,find inventory investment for 2007.
$$\begin{array} { c c } { \text { Date } } & \text { Level of Inventory } \\\text { January 1, 2007 } & \$ 850 \text { million } \\\text { April 30,2007 } & 775 \text { million } \\\text { September 1, 2007 } & 940 \text { million } \\\text { December 31, 2007 } & 870 \text { million }\end{array}$$

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Definitions:

Actual Activity

A measure of the real amount of work performed or production completed in a specific period.

Activity-based Costing

A costing methodology that assigns costs to products or services based on the activities required to produce them, aiming to more accurately reflect the consumption of resources.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance of equipment, and factory supplies, not directly attributable to specific product units.

Activity Cost Pools

Aggregations of all the costs associated with a specific activity, used in activity-based costing to allocate costs more accurately.