Camping Gear Company Had 500 Units of Inventory on Hand

question 59

Multiple Choice

Camping Gear Company had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $14 each using the last-in,first-out (LIFO) method.The current replacement cost is $10 per unit.The selling price charged by Camping Gear Company for each finished product is $17.As a result of recording the adjusting entry as per the lower-of-cost-or-market rule,the gross profit will ________.

• A) increase by $5,000
• B) decrease by $5,000
• C) increase by $2,000
• D) decrease by $2,000

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Definitions:

Global Segmentation

Global segmentation involves dividing a market into distinct groups of consumers with shared characteristics across international borders to tailor marketing efforts.

Changing Needs

The evolution or variation in consumers' requirements or desires over time, influencing product development and marketing strategies.

Global Product Strategy

A framework for developing, marketing, and selling products in multiple countries with the aim of optimizing global performance.

Target Market

A specific group of consumers at whom a company aims its products and services, identified by certain demographic and psychographic criteria.