Mineral Resource Company Contracts to Provide Several Manufacturers with Tin

question 1

Multiple Choice

Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor

• A)can substitute some other material for the tin.
• B)is excused from the performance of its contracts.
• C)is liable for breach of contract.
• D)must still supply the tin needs of its customers.

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Definitions:

LIFO Method

An accounting method that records the last items added to inventory as the first items sold.

Ending Inventory

Refers to the value of goods available for sale at the end of an accounting period.

Tennis Rackets

Sporting equipment consisting of a handled frame with an open hoop across which a network of strings or catgut is stretched tightly, used to strike a tennis ball.

Inventory Turnover

A measure of how many times inventory is sold or used in a time period such as a year.