After Both of the Entries for the Inventory Adjustment Have

question 75

Multiple Choice

After both of the entries for the inventory adjustment have been posted, the debit in the Income Summary account represents:

• A)Beginning Inventory
• B)Cost of Goods Sold
• C)Ending Inventory
• D)Net Income

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Definitions:

Opportunity Costs

Opportunity costs represent the benefits a person, investor, or business misses out on when choosing one alternative over another.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Product Costs

The costs directly associated with producing goods, including direct materials, direct labor, and manufacturing overhead.