The Computation of Equivalent Units Under the FIFO Method

question 140

Multiple Choice

The computation of equivalent units under the FIFO method:

• A) treats units in the beginning work-in-process inventory as if they were started and completed during the current period.
• B) treats units in the beginning work-in-process inventory as if they represent a batch of goods separate and distinct from goods started and completed during the current period.
• C) treats units in the ending work-in-process inventory as if they were started and completed during the current period.
• D) ignores units in the beginning and ending work-in-process inventories.

---

Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing and able to purchase at various prices.

Price Elasticity

A gauge for the reaction of demand for a product to variations in its cost.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.