Final answer:
The value of closing and opening stock affects the calculation of a company's profits, average stock, and stock turnover. However, it does not determine the date for taking stock in the company, which is decided by management. The correct answer is option E.
Step-by-step explanation:
The determination of the value of closing stock and opening stock helps in several aspects of financial analysis, but not all options listed. One can calculate profits by comparing total revenue and total cost, where opening and closing stock values are part of the cost of goods sold and affect the gross profit made. These stock values also play a role in calculating the average stock of the company and the rate of stock turnover. However, the value of closing and opening stock does not help in determining the date for taking stock in the company. This date is usually set by the company's management based on operational convenience and compliance requirements.
Understanding how to identify profits and losses with the average cost curve and the shutdown point are essential concepts in economics, particularly for a firm to determine the price at which it should continue producing in the short run or to decide if operations should cease.