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A skeptical manager asks what long-range forecasts can be used for. Give her three possible uses/purposes.
Cost Per Equivalent Unit
A calculation used in process costing that determines the cost assigned to each unit produced, taking into account partially completed units.
Conversion Costs
Costs incurred to convert raw materials into finished products, typically including labor and overhead.
FIFO Method
An inventory valuation method that assumes the first items placed into inventory are the first ones sold, standing for "First-In, First-Out".
Equivalent Units
A concept in cost accounting used to express the amount of work done on partially finished goods in terms of fully completed units.
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