REFERENCE: Ref.10_06 The Following Account Balances Are Available for Esposito,an Italian U.S.subsidiary

question 42

Multiple Choice

REFERENCE: Ref.10_06
The following account balances are available for Esposito,an Italian U.S.subsidiary for 2009:
SHAPE \* MERGEFORMAT

-Compute the cost of goods sold for 2009 in U.S.dollars using the temporal method.

• A)$376,650.
• B)$387,750.
• C)$388,800.
• D)$400,950.
• E)$409,050.

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Definitions:

Inelastic

Describes a situation where the quantity demanded or supplied changes by a smaller percentage than the percentage change in price.

Total Revenue

is the total amount of money received by a company from its sales of goods or services, before any expenses are subtracted.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity.

Appropriations

Funds that are set aside by a governing body, like a legislature, for a specific use or purpose as part of a budget or spending bill.