Longview Baskets Has in Its Inventory 2500 Damaged Baskets That

question 159

Multiple Choice

Longview Baskets has in its inventory 2500 damaged baskets that cost $20,000 The baskets can be sold in their present condition for $17,000, or repaired at a cost of $18,000 and sold for $36,000. What is the opportunity cost of selling the baskets in their present condition?

• A)$37,000
• B)$35,000
• C)$54,000
• D)$18,000

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Definitions:

Foreign Operations

Business activities or entities that a company conducts or owns in countries other than where its main operations are located.

Objectives

The specific, measurable goals that an organization or individual aims to achieve within a certain timeframe.

Functional Currency

The primary currency of the primary economic environment in which an entity operates and carries out its transactions.

Current Rate Method

A method of foreign currency translation where all financial statement items are converted at the current exchange rate.