[The Following Information Applies to the Questions Displayed Below

question 106

Multiple Choice

[The following information applies to the questions displayed below.]
Michael uses its periodic inventory system and the following information is available:

-What is the cost of goods sold?

• A)$ 9,800
• B)$33,600
• C)$32,200
• D)$43,400

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Definitions:

Incremental Cash Flows

The additional cash flow a company receives from taking on a new project or making a financial decision.

Initial Outlay

The initial investment amount or the upfront cost required to start a project or investment.

Sunk Cost

A cost associated with a project expended prior to making the decision to undertake that project (for example, the cost of research into the idea). Since sunk funds are already gone, they cannot alter future costs or benefits, and should not be included in the analysis leading to a decision.

Opportunity Cost

The benefit foregone by using an asset in a particular way. Usually the income or benefit it would produce in its next best use.