The Average Cost of a Ticket to the 2016 World

question 7

Multiple Choice

The average cost of a ticket to the 2016 World Series Game 1 was $1200. The average cost in 2017 increased by 1/5. What was the cost in 2017?

• A)$1,000
• B)$1,400
• C)$240
• D)$1,440
• E)None of these

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Definitions:

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each quantity of product (job) that is manufactured.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.

Direct Materials

Raw materials that can be directly associated with the production of goods or services and are considered a variable cost.

Equivalent Units

A concept in cost accounting used to convert the quantity of partially completed goods into a full equivalent number based on their stage of completion.