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If the Number of Buyers in a Market Decreases, Then

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If the number of buyers in a market decreases, then


Definitions:

Equivalent Unit

A measurement used in process costing that quantifies the amount of materials or labor required to produce a single unit of output in mixed or partial stages of completion.

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period by components that were not finished, converting partially completed goods into the equivalent of fully completed units.

Weighted Average Method

An inventory costing method that averages the cost of inventory items to determine the value of goods sold and ending inventory.

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