The Following Are Possible Sources of Error in Calculating Closing

question 17

Multiple Choice

The following are possible sources of error in calculating closing inventory except for:

• A) Mistakes in counting during the stocktake.
• B) An incorrect cut-off between accounting periods.
• C) Mistakes in dealing with goods on consignment.
• D) Mistakes in the price at which the goods are sold to customers.

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Definitions:

Marginal Product

The increase in output that arises from an additional unit of input.

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.

Marginal Product

Marginal product is the additional output that is produced by adding one more unit of a specific input, holding all other inputs constant.

Optimal Labor Employment

The most efficient allocation of labor resources in a business to maximize productivity and minimize costs.