Entrepreneurs Have a Strong Incentive to

question 113

Multiple Choice

Entrepreneurs have a strong incentive to

• A) discover new production techniques that reduce costs.
• B) introduce new products that are highly valued relative to their cost.
• C) produce goods that are valued more highly than the resources required for their production.
• D) do all of the above.

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Definitions:

First-In, First-Out

An inventory valuation method where the oldest items in inventory are sold or used first.

Equivalent Units

A concept in cost accounting used to calculate the work done on partially completed goods, expressed in terms of fully completed units.

Cost Reconciliation Report

A document used to reconcile and verify the costs incurred by a department or project against the budgeted or expected costs.

Work In Process Inventory

Inventory that represents partially completed goods which are still in the production process.