Define and Give an Example of Footprint Shifting

question 20

Essay

Define and give an example of Footprint shifting.

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Definitions:

Weighted-Average Method

A cost accounting methodology that calculates unit costs by combining the costs and outputs from two or more periods, smoothing out fluctuations.

Work in Process Inventory

Inventory that includes all partially completed goods that are still in the process of production.

Units Transferred Out

The number of units moved from one production process or department to the next stage or to finished goods inventory.

Weighted-Average Cost Method

A method of costing inventory that determines the cost of goods sold and the value of the ending inventory by averaging the cost of all available units over the period.