Arizona Inc

question 20

Multiple Choice

Arizona Inc.uses the perpetual inventory system, and recorded the following data pertaining to raw material X during January 2017: The moving-average unit cost of raw material X inventory at January 31, 2017 is

• A)$4.70.
• B)$4.50.
• C)$4.43.
• D)$4.35.

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Definitions:

Marginal Revenue

Marginal revenue is the additional income generated from the sale of one more unit of a product or service.

Profit Maximizing

The process or strategy of adjusting production and operations to achieve the highest possible profit from business activities.

Economic Efficiency

A situation where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.