Which of the Following Is the Correct Formula to Calculate

question 87

Multiple Choice

Which of the following is the correct formula to calculate average merchandise inventory?

• A) Average merchandise inventory = (Beginning merchandise inventory - Ending merchandise inventory) / 2
• B) Average merchandise inventory = (Beginning merchandise inventory × Ending merchandise inventory) / 2
• C) Average merchandise inventory = (Beginning merchandise inventory / Ending merchandise inventory) / 2
• D) Average merchandise inventory = (Beginning merchandise inventory + Ending merchandise inventory) / 2

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Definitions:

Real Assets

Physical, tangible assets such as land, buildings, machinery, or commodities that have intrinsic value due to their substance and properties.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting fair competition and preventing unfair business practices.

Exclusive Dealer

An entity that has the sole rights to sell or distribute a specific product or service within a certain geographic area or market.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.