A Characteristic of Irrelevant Information Is That

question 124

Multiple Choice

A characteristic of irrelevant information is that

• A)the information is the same among the alternatives.
• B)differences will occur in the future.
• C)differences among the alternatives must have occurred in the past and must occur in the future.
• D)it differs between the alternatives.

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Definitions:

Weighted-Average Method

A method for valuing inventory that figures out the cost of goods sold and the end inventory value by averaging the cost of all items available for sale over the period.

Labor and Overhead

The combination of direct labor costs and overhead costs incurred in the production process.

Conversion Costs

Refers to the combination of direct labor and manufacturing overhead costs incurred to convert raw materials into finished products.

Weighted-Average Method

An inventory costing method that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.