A Company Reported the Following Information Regarding Its Inventory

question 169

Multiple Choice

A company reported the following information regarding its inventory. Beginning inventory: cost is $70,000; retail is $130,000
Net purchases: cost is $65,000; retail is $120,000
Sales at retail: $145,000
The year-end inventory showed $105,000 worth of merchandise available at retail prices. What is the cost of the ending inventory?

• A) $48,300.
• B) $56,700.
• C) $56,441.
• D) $78,300.
• E) $105,000.

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Definitions:

Internal Consistency

A measure of how well the items on a test measure the same construct or trait.

Content Validity

Refers to the extent to which a test measures all aspects of the concept it intends to measure.

Alternate-form Reliability

Refers to a measure's reliability assessed by comparing different versions of the test that are created to be equivalent.

Test-retest Reliability

A measure of consistency where the same test is administered to the same group at two different points in time to assess its stability over time.