The Markup Percentage Denominator in the Variable-Cost Approach Is the

question 135

Multiple Choice

The markup percentage denominator in the variable-cost approach is the

• A) desired ROI per unit.
• B) fixed costs per unit.
• C) manufacturing cost per unit.
• D) variable costs per unit.

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Definitions:

Weighted-Average Process Costing System

An accounting method that averages the costs of different production runs, blending them evenly throughout the inventory.

Equivalent Units for Materials

A calculation used in process costing that converts partially completed units into an equivalent number of fully completed units, focusing on the materials aspect.

Weighted-Average Method

An inventory costing method that assigns an average cost to each item in inventory, calculated by dividing the total cost of goods available for sale by the total units available for sale.

Equivalent Units

A concept used in cost accounting to express the amount of work done on units of production in terms of fully completed units.