The Weighted-Average Method

question 44

Multiple Choice

The weighted-average method:

• A) calculates an average unit cost by dividing the total cost of goods sold by the total units sold.
• B) calculates an average unit cost by dividing the total cost of goods available for sale by the total units of goods available for sale.
• C) calculates an average unit cost by adding the total cost of goods available for sale to the total units of goods available for sale.
• D) None of these answers is correct.

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Definitions:

Equilibrium Price

The cost where the supply of goods meets the demand for those goods.

Tax Revenues

The funds collected by governments through the process of levying taxes.

Point Elasticity

The measure of how much the quantity demanded of a good responds to a change in price at a specific point on the demand curve.

Producer Surplus

The difference between the amount a producer is paid for a good and the minimum amount they are willing to accept for producing it.