Which of the Following Amounts Would Be Reported for Inventory

question 29

Multiple Choice

Which of the following amounts would be reported for Inventory on the balance sheet if the cost of an item is $80,the current selling price is $100 and the current replacement cost is $75?

• A) $100
• B) The average of $75 and $80
• C) $80
• D) $75

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Definitions:

Cost Savings

Financial savings achieved by reducing expenses, improving efficiency, or other means, usually within a business context.

Productivity Improvements

Refers to measures or initiatives implemented to increase the efficiency and effectiveness of a process or operation, enhancing the output relative to input.

Explicit Financial Indicator

A clear and direct measure or metric used to assess the financial performance of an organization, such as revenue, profit, or return on investment.

Return on Investment

A financial metric that calculates the profitability of an investment relative to its cost.