Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

For the year ending 31 December 2021, the information below is provided. Revenue: $1\,400\,000 Inventory at 1 January 2021: $140\,000 Inventory at 31 December 2021: $148\,000 The trader applies a mark-up of $60\%$ to all purchases. What was the value of purchases during the year?

  • A$848\,000
  • B$867\,000
  • C$875\,000
  • D$883\,000

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