[The Following Information Applies to the Questions Displayed Below

question 19

Multiple Choice

[The following information applies to the questions displayed below.]
At year-end,the perpetual inventory records of Anderson Co.indicate 60 units of a particular product in inventory,acquired at the following dates and unit costs:
Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand
-Assuming that Anderson uses the FIFO cost flow assumption,it should record this inventory shrinkage by:

• A)Crediting Cost of Goods Sold $7,500.
• B)Debiting Cost of Goods Sold $7,000.
• C)Crediting Cost of Goods Sold $7,000.
• D)Debiting Cost of Goods Sold $7,500.

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Definitions:

First-Mover Advantages

Benefits gained by a company that is the first to enter a new market, establish brand recognition, and secure customer loyalty before competitors.

Nash Equilibrium

is a concept in game theory where each player's strategy is optimal, given the strategies of other players.

Herfindahl Index

A measure of market concentration used to determine the level of competition within an industry, calculated by squaring the market share of each firm competing in the market and then summing the resulting numbers.

Differentiated Oligopoly

An oligopoly in which firms produce a differentiated product.