The Reason Why Weights Are Used in an Aggregate Index

question 3

Multiple Choice

The reason why weights are used in an aggregate index is to

• A)insure that all items have an influence on the index which is relative to their respective importance
• B)insure that expensive items are considered more heavily
• C)insure that current prices will influence the index more than base prices
• D)None of these alternatives is correct.

Understand how materials and costs flow through accounts in a process costing system.

Analyze the appropriateness of process costing in different manufacturing and assembly operations.

Calculate equivalent units for materials and conversion costs under the weighted-average method.

Understand the concept and application of equivalent units of production in a process costing system.

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