1. lf a company sells goods that cost $80,000 for $92.000, the firm will: A reduce Finished-Goods Inventory by S80,000. B. reduce Finished-Goods Inventory by S92.000. C report sales revenue on the balance sheet of $92.000. D. reduce Cost of Goods Sold by $80,000. E follow more than one of the above procedures.

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 3CE: Pietro expects to produce 50,000 units and sell 49,300 units. Beginning inventory of finished goods...
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1. If a company sells goods that cost $80,000 for $92,000, the firm will:
A. reduce Finished-Goods Inventory by $80,000.
B. reduce Finished-Goods Inventory by $92.000.
C. report sales revenue on the balance sheet of $92.000.
D. reduce Cost of Goods Sold by $80,000.
E. follow more than one of the above procedures.
Transcribed Image Text:1. If a company sells goods that cost $80,000 for $92,000, the firm will: A. reduce Finished-Goods Inventory by $80,000. B. reduce Finished-Goods Inventory by $92.000. C. report sales revenue on the balance sheet of $92.000. D. reduce Cost of Goods Sold by $80,000. E. follow more than one of the above procedures.
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