Which of the Following Is Not a Reason Why Some

question 45

Multiple Choice

Which of the following is not a reason why some workers are paid above the equilibrium wage?

• A) minimum-wage laws
• B) efficiency wages
• C) unions
• D) beauty

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Definitions:

Equivalent Units

A concept in cost accounting used to assess work-in-process inventory by converting partial units into a number of equivalent full units.

Ending Inventory

The worth of merchandise ready for purchase at the close of a financial period, determined by adding purchases to the initial inventory and then subtracting the cost of goods that were sold.

First-In, First-Out Method

An inventory valuation method where the earliest items added to inventory are the first ones considered sold.

Equivalent Units

A measure used in process costing that converts partially completed goods into an equivalent number of fully completed units.