You Can Conclude That

question 134

Multiple Choice

You can conclude that

• A)new firms will enter the industry.
• B)existing firms will leave the industry.
• C)the industry is in long run equilibrium.
• D)it is unclear whether the industry is in the short run or the long run.

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Definitions:

Periodic Inventory Method

An accounting method that updates inventory and cost of goods sold figures at the end of an accounting period, not at each sale.

Cost Of Merchandise Sold

The total cost incurred to purchase or produce the goods that have been sold to customers during a specific period.

Gross Profit

The difference between revenue and the cost of goods sold, indicating the amount before deducting operating expenses.

Cost Of Merchandise Sold

The total expense incurred by a business to purchase or manufacture the goods sold during a period.