Twenty Units of Inventory on Hand at the End of the Year

question 133

Multiple Choice

Twenty units of inventory on hand at the end of the year are recorded at their cost of $5.00 per unit using FIFO.Current replacement cost is $4.50 per unit.What amount would be reported as inventory on the balance sheet?

• A) $100.00
• B) $5.00
• C) $4.50
• D) $90.00

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Definitions:

Homogeneous Oligopolists

A market structure where a few firms offer products or services that are similar in nature and hence are close substitutes for each other.

Differentiated Oligopolists

Firms within an oligopoly market structure that sell products or services that are distinguishable from each other through branding, quality, or other features.

Herfindahl Index

A measure of market concentration that squares and sums the market share percentages of all firms within an industry.

Four-Firm Concentration Ratio

The four-firm concentration ratio is a measure used to assess the competitiveness of a market by calculating the combined market share of the four largest firms within an industry.