An Item Described as Low-Risk and Low-Opportunity Is a ________

question 36

Multiple Choice

An item described as low-risk and low-opportunity is a ________.

• A) nuisance item
• B) bottleneck item
• C) variable item
• D) critical item
• E) commodity

---

Definitions:

Process Costing System

A method of costing used where identical or highly similar goods are produced, assigning costs to units of product based on the process they undergo.

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns the average cost to both the cost of goods sold and remaining inventory.

Equivalent Units

Equivalent units are a concept in cost accounting used to compute the number of units that could have been completed given the amount of work done, taking partially completed units into account.

Transferred-In Costs

Costs associated with units of product moved from one production process to another in the manufacturing cycle.