The Study of Economics

question 45

Multiple Choice

The study of economics:

• A) is concerned with proving that capitalism is better than socialism
• B) focuses on what products businesses should produce and in what quantities
• C) is narrowly focused on only parts of the economy
• D) is a way of analysing decision- making processes caused by scarcity

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Definitions:

Weighted-Average Method

A cost flow assumption used in inventory valuation that averages the cost of goods available for sale.

Cost Per Equivalent Unit

An accounting measure used in process costing that represents the cost incurred to produce an equivalent unit of production.

Step-Down Method

A cost allocation method used in costing multiple service departments where the cost of one service department is allocated to others and subsequently to production departments.

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as departments, products, or services.