A Company Has the Following Per Unit Original Costs and Replacement

question 145

Multiple Choice

A company has the following per unit original costs and replacement costs for its inventory: Part A: 10 units with a cost of $3 and replacement cost of $2.50.
Part B: 40 units with a cost of $9 and replacement cost of $9.50.
Part C: 75 units with a cost of $8 and replacement cost of $7.50.
Under the lower of cost or market method,the total value of this company's ending inventory must be reported as:

• A)$990.00.
• B)$947.50.
• C)$967.50 or $947.50,depending upon whether LCM is applied to individual items or the inventory as a whole.
• D)$967.50.
• E)$990.00 or $947.50,depending upon whether LCM is applied to individual items or to the inventory as a whole.

Acknowledge the role of company background knowledge in sales effectiveness.

Grasp various sales and advertising strategies, including trade advertising and the use of premiums.

Understand the principles of pricing, discounting, and credit policies to gain competitive advantages.

Recognize the multifaceted knowledge required for sales success beyond product features.

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Definitions:

Supply Chain Level

Denotes the stage or position of an entity within the overall network from raw materials to end customer.

Individual Firm Level

The perspective of analyzing business strategies, performance, and decision-making at the single company level.

Environmental Performance

An evaluation of how well an organization or product meets specific environmental criteria or standards, reflecting on sustainability practices.

Financial Performance

An assessment of how well an organization is using its assets to generate revenues and profits, judged by indicators like ROI and earnings.