Changes in Aggregate Demand Can Cause Fluctuations in _____ and _____

question 104

Short Answer

Changes in aggregate demand can cause fluctuations in _____ and _____ in the short run, and only ____ in the long run.

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Definitions:

Weighted-Average Method

A costing method for inventory that determines the cost of goods sold and the remaining inventory value by averaging the costs of all available units for sale throughout the period.

Equivalent Units

A concept in cost accounting that is used to allocate costs to the production process when there is more than one stage of production, converting work-in-process into complete units of output.

Direct Labor Costs

These are wages and benefits paid for the labor directly involved in the manufacturing of products.

Processing Departments

Units or sections in a manufacturing environment where specific processes are completed, contributing to the production of goods.