If Ending Inventory on December 31,2016,is Overstated,then

question 1

Multiple Choice

If ending inventory on December 31,2016,is overstated,then:

• A) cost of goods sold for the year ended December 31, 2017, will be understated
• B) cost of goods sold for the year ended December 31, 2016, will be overstated
• C) gross margin for the year ended December 31, 2016, will be understated
• D) gross margin for the year ended December 31, 2017, will be understated

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Market

An area or arena in which commercial dealings are conducted.

Pricing Objectives

Pricing objectives are the goals a company aims to achieve through its pricing strategies, such as maximizing profit, increasing market share, or targeting a specific market segment.

Components

Fundamental parts or elements that combine to form a complex system, mechanism, or product.