McFadden,Inc

question 127

Multiple Choice

McFadden,Inc.has collected the following data.(There are no beginning inventories. )

What is the ending balance in Finished Goods Inventory using variable costing if 500 units are sold?

• A)$6,400
• B)$7,400
• C)$3,400
• D)$4,000

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Definitions:

Base Amount

A reference amount from which adjustments are made, often used in calculations for taxes, benefits, or financial analysis.

Horizontal Analysis

A financial analysis technique that compares line items in the financial statements over a period of time to identify trends and changes.

Liquidity Ratio

A financial metric used to determine how easily a company can pay off its short-term liabilities with its liquid assets.

Acid-test Ratio

A financial metric that evaluates a company's ability to pay off its current liabilities with its most liquid assets.