The Demand for Flour Is

question 136

Multiple Choice

The demand for flour is

• A)inelastic because there are few substitutes for flour and it represents a large percentage of a consumer's budget
• B)inelastic because there are many substitutes for flour and it represents a large percentage of a consumer's budget
• C)inelastic because there are few substitutes for flour and it represents a small percentage of a consumer's budget
• D)elastic because there are no substitutes for flour and it represents a large percentage of a consumer's budget
• E)elastic because there are many substitutes for flour and it represents a large percentage of a consumer's budget

Estimate inventory cost using the retail method.

Estimate inventory cost using the gross profit method.

Distinguish between FOB shipping point and FOB destination and its impact on inventory valuation.

Analyze the effects of consigned goods on inventory accounts.

---

Definitions:

Commodity

represents a basic good used in commerce that is interchangeable with other goods of the same type.

Produce

Refers to agricultural products and goods that have been grown or farmed.

Industry

The sector of an economy that is involved in the production of goods or related services.

Advantage

A condition or circumstance that places a person or entity in a favorable or superior position.