Skymont Company Wants an Ending Inventory Each Month Equal to 30

question 6

Multiple Choice

Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods sold.Cost of goods sold for February is projected at $45,000.Ending inventory at the end of January was $12,000.Based on this information,purchases for February would be:

• A) $31,500.
• B) $46,500.
• C) $43,500.
• D) $33,000.

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Definitions:

Prefrontal Cortex

The part of the frontal lobes of the brain located at the front of the frontal lobe, involved in complex behaviors such as planning, decision making, and moderating social behavior.

Phineas Gage

A historically significant case in the study of neuroscience and psychology, where a man survived a severe brain injury that dramatically changed his personality and behavior.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to mind when evaluating a specific topic, concept, method, or decision.

Sunk Cost

A past expense that has already been incurred and cannot be recovered, which should not influence ongoing or future decisions.