Which of the Following Should Not Be Included in the Count

question 90

Multiple Choice

Which of the following should not be included in the count of ending merchandise inventory?

• A) Damaged goods to be sold at a reduced price
• B) Goods in transit to which a company has title
• C) Goods in warehouses
• D) Goods sold but not yet delivered

---

Definitions:

Income Effect

The modification of income for someone or within an economy, and its subsequent impact on how much of a good or service is sought after.

Engel Curve

A graph showing the relationship between a consumer's income and their expenditure on a specific good.

Beer Type

Classifications of beer determined by factors like flavor, color, brewing method, and origin.

Substitution Effect

The substitution effect occurs when consumers replace more expensive items with less expensive alternatives due to a change in relative prices.