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:

Substitute Input

An alternative resource or material that can be used in place of another in the production process to achieve the same outcome.

Labor Resource Market

A market where individuals offer their labor or services for wages to employers who are in need of those services.

Output Effect

The change in total revenue generated by selling an additional unit of a product or service.

Substitution Effect

The economic understanding that as prices rise or income decreases, consumers will replace more expensive items with cheaper alternatives.