In Its First Year of Operations, a Company Has Sales

question 21

Multiple Choice

In its first year of operations, a company has sales of $116,000, ending finished goods inventory of $11,800, variable manufacturing costs of $57,600, and fixed manufacturing costs of $28,000 for the year. Assuming the company uses direct costing, the cost of goods sold for the year is

• A)$70,200.
• B)$17,800.
• C)$45,800.
• D)$57,600.

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Definitions:

Discretionary Stakeholders

Stakeholders who do not have a direct stake in the business or project but may be affected or can influence it voluntarily.

Legitimacy

The perception or recognition by stakeholders that actions, decisions, or leadership are appropriate, proper, and justified within a socially constructed system of norms, values, beliefs, and definitions.

Dependent Stakeholders

Individuals or groups who rely on a business's success or failure for their own benefit but don't have direct control over its operations.

Urgency and Legitimacy

The critical need for action combined with the recognized authenticity or credibility that prompts such action.