Charles Scrab Inc

question 49

Multiple Choice

Charles Scrab Inc. has beginning inventory of $15,000, purchases of $25,000, and ending inventory of $10,000, sales of $75,000, operating expenses of $30,000, and a tax rate of 40% for 2008. An accounting clerk input the ending inventory as $12,000. What is the effect on 2008 net income?

• A)Net income will be $1,200 higher.
• B)Net income will be $1,200 lower.
• C)Net income will be $2,000 higher.
• D)Net income will be $2,000 lower.

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Definitions:

Refreezing Phase

In the context of change management, it is the final stage in Lewin's change model where new behaviors are solidified into the organization's culture.

Lewin's Model

A model for understanding organizational and behavioral change, typically described through the phases of unfreezing, changing, and refreezing.

Evaluating Results

The process of analyzing and assessing outcomes of strategies or actions to determine their effectiveness and impact.

Feedback

Information given back to individuals regarding their performance or behavior, meant to help in improvement and development.