Desired Ending Inventory Is 80% of Beginning Inventory

question 34

Multiple Choice

Desired ending inventory is 80% of beginning inventory. If cost of goods sold is $300,000, which of the following statements is TRUE regarding purchases?

• A) Purchases will be more than cost of goods sold.
• B) Purchases will be 80% of cost of goods sold.
• C) Purchases will equal cost of goods sold.
• D) Purchases will be less than cost of goods sold.

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Definitions:

Drug-Centered Lifestyle

A way of life that revolves around the procurement and use of drugs, often leading to social, legal, and health problems.

Psychological Dependence

A condition where an individual feels a compelling emotional need to continue using a substance or engaging in an activity.

Physical Dependence

A physiological state where the body has adapted to the presence of a substance, leading to withdrawal symptoms when usage is stopped or reduced.

Withdrawal

The process of pulling back or retreating, either physically or emotionally, from a situation or substance dependence.