RJ Corporation Has Provided the Following Information About One of Its

question 90

Multiple Choice

RJ Corporation has provided the following information about one of its inventory items: During the year, RJ sold 3,000 units. What was ending inventory using the average cost flow assumption under a periodic inventory system?

• A)$640,000.
• B)$840,000.
• C)$770,000.
• D)$880,000.

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Definitions:

Economic Costs

The total cost of production, including both explicit costs like wages and materials and implicit costs such as opportunity costs.

Accounting Profit

The total revenue of a business minus the explicit costs associated with that revenue, calculated using generally accepted accounting principles (GAAP).

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Short Run

In economics, a period during which at least one of a firm's inputs is fixed and cannot be changed.