Exhibit 1.1 -Refer to the Circular-Flow Model in Exhibit 1.1. If C

question 107

Multiple Choice

Exhibit 1.1

-Refer to the circular-flow model in Exhibit 1.1. If C represents households and A represents product markets, then the flow from C to A is:

• A) revenue.
• B) expenditures.
• C) products.
• D) income.
• E) resources.

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods in process costing environments, treating them as if they were whole units.

Process Costing

An accounting method used to allocate costs to units of product in continuous, homogeneous production processes.

Department A

A specific segment or division within an organization that focuses on a particular set of tasks or responsibilities.

Equivalent Units

A concept in cost accounting used to equate units of production in various stages of completion to a number of fully completed units.