Which of the Following Is Both an Economic and a Financial

question 193

Multiple Choice

Which of the following is both an economic and a financial investment?

• A)government building a new road
• B)Boeing Corporation building a new factory
• C)a private citizen buying corporate stock
• D)the Federal Reserve buying bonds from commercial banks

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Definitions:

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Cost Per Equivalent Unit

A calculation used in process costing, dividing total production costs by the number of units produced, accounting for partially completed units.

Process Costing

A costing method used when identical or similar goods or services are produced in mass quantities, assigning costs to units of product based on the process they go through.

Processing Departments

Specific areas or divisions within a manufacturing facility where distinct stages of production are carried out.