Best Deals Has Six CD Players in Ending Merchandise Inventory

question 55

Multiple Choice

Best Deals has six CD players in ending merchandise inventory on December 31. The players were purchased in November for $170. The price lists from suppliers indicate the current replacement cost of a CD player to be $168. Which of the following statements is true of the effects of the adjustments to ending merchandise inventory on the cost of goods sold?

• A)The cost of goods sold would increase by $2.
• B)The cost of goods sold would not be affected.
• C)The cost of goods sold would decrease by $12.
• D)The cost of goods sold would increase by $12.

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Definitions:

Economic Equality

Economic equality is the principle of fairness in economic distribution, aiming for equal access to wealth, resources, and opportunities regardless of background or identity.

Elite Theory

A theory in sociology and political science that suggests societies are divided between a small ruling elite and the masses, with the elite exercising significant power over resources and decision-making.

Sociologists

Researchers who analyze the social phenomena, interactions, and structures within human groups and societies.

Political Power

Refers to the ability or authority to influence people's behavior or the course of events, often within the context of governance and policy-making.