Of the Following, Who Would Probably Have the Highest Income

question 13

Multiple Choice

Of the following, who would probably have the highest income?

• A)a couple, both of whom have high school educations and work at WalMart
• B)a husband who has a high school degree and a middle-management job and his wife, who is a full-time mother
• C)a couple, both of whom have high school educations; he is a high school teacher and she is a librarian
• D)a husband who has a college degree and is a high school teacher and his wife, who has an MBA and works as a insurance company executive
• E)a couple, both of whom have college degrees and are high school teachers

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory, based on the cost of goods available for sale and the number of units available.

Equivalent Units

Equivalent units are a concept in cost accounting used to assign costs to partially completed goods, converting them into the amount of finished goods units they represent.

Direct Materials Cost

The expenditure on raw materials that are directly involved in the production of a good or service.

Process Cost Summary

A report detailing the costs associated with each phase of the manufacturing process, showing material, labor, and overhead expenses.