Given the Following Data,what Is Cost of Goods Sold as Determined

question 120

Multiple Choice

Given the following data,what is Cost of Goods Sold as determined by the FIFO method?

• A)$1,400
• B)$1,460
• C)$1,724
• D)$2,240

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Definitions:

Fixed Cost

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or loan payments.

Cost Behavior

The manner in which a cost changes in relation to its activity base (driver).

Activity Changes

Variations or alterations in the level of operations, processes, or actions within an organization that can impact performance and outcomes.

Total Variable Costs

The cumulative expenses that vary directly with the level of production or business activity.