Crossbow Corp

question 16

Multiple Choice

Crossbow Corp. produces a single product. Data concerning June's operations follow: Under variable costing, ending inventory on the balance sheet would be valued at:

• A)$10,000
• B)$7,000
• C)$9,000
• D)$12,000

---

Definitions:

Equity Carve-Outs

A corporate strategy of creating a new, independent company through the sale or distribution of new shares of an existing part of the company to external or existing shareholders.

EMH

Efficient Market Hypothesis, the theory that all known information is reflected in stock prices and that it is impossible to consistently outperform the market through expert stock selection or market timing.

Law Of One Price

The rule stipulating that equivalent securities or bundles of securities must sell at equal prices to preclude arbitrage opportunities.

Relative Strength

The extent to which a security has outperformed or underperformed either the market as a whole or its particular industry.