Use This Information to Answer the Following Question

question 73

Multiple Choice

Use this information to answer the following question. In addition, beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Cost of goods sold for the period was

• A) $62,000.
• B) $50,000.
• C) $76,000.
• D) $46,000.

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Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs.

Efficient Allocation

The optimal distribution of resources among different uses, ensuring that resources are utilized in a way that maximizes overall benefit or utility.

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, often leading to inefficiencies.

Underallocation

The insufficient provision of resources to areas where they can be most efficiently or effectively used, often leading to inefficiencies.