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Anna35 [415]
3 years ago
7

Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory was overstated by $52,000

. As a result, Bren's cost of goods sold for 2005 was: Understated by $78,000. Overstated by $78,000. Understated by $26,000. Overstated by $26,000.
Business
1 answer:
olga_2 [115]3 years ago
5 0

Answer:

Understated by $78,000

Explanation:

Given the above information,

We would sum up the beginning inventory of $26,000 that was understated on January 1 with the ending inventory of $52,000 that was overstated on December 31.

= $26,000 + $52,000

= $78,000

It is to be noted that understatement of beginning inventory and the over statement of ending inventory causes cost of goods sold to be understated by $78,000

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Answer:

Option (C) is correct.

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We know that the consumer's decision is more offenly based on the point where the marginal cost is equal to the marginal benefit because they are not taking the impact of negative externalities.

If proper action is not taken by the government, negative externality will result in a market inefficiencies.

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Answer:

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