Use This Information to Answer the Following Question

question 110

Multiple Choice

Use this information to answer the following question. In addition,beginning merchandise inventory was $11,000 and ending merchandise inventory was $7,000.
Net cost of purchases for the period were

• A)$37,000.
• B)$21,000.
• C)$27,000.
• D)$33,000.

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Definitions:

Variable Cost Method

An accounting approach where variable costs are expensed as incurred and fixed costs are systematically allocated over time, typically used in costing and decision-making.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost.

Fixed Manufacturing Costs

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance for a manufacturing facility.

Variable Selling

Refers to costs that vary directly with changes in the volume of sales. These can include commissions, shipping fees, and packaging costs.