A Major Advantage of the Weighted Average Method of Inventory

question 11

Multiple Choice

A major advantage of the weighted average method of inventory costing is that

• A) Cost flows correspond with the physical flow of merchandise.
• B) Recent costs are assigned to the ending inventory balance.
• C) It is relatively easy to apply.
• D) It matches current costs with revenues.

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Definitions:

International Business

Commercial transactions that occur across national borders, including trade, investment, and operational activities.

Unemployment

The condition of being jobless and actively looking for employment but unable to find work.

Lost Production

The output that could have been produced but was not due to inefficiencies, disruptions, or unused capacity.

Unemployment Rate

The portion of individuals in the labor force who are unemployed and actively hunting for jobs.