-Exhibit 16

question 31

Multiple Choice

-Exhibit 16.5 shows a Phillips curve. Beginning at point a, if fiscal or monetary policy is used to stimulate output and thereby reduce unemployment, the economy will move from _____

• A) point a to point b.
• B) point b to point a.
• C) point a to point c.
• D) point a to point d.
• E) point c to point d.

Compute the costs per equivalent unit for materials and conversion costs.

Appreciate the importance of cost accounting in pricing, cost control, and decision making within a manufacturing environment.

Understand the definition and application of the FIFO method in process costing.

Analyze how equivalent units of production are calculated under the FIFO method.

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Definitions:

Biotic Potential

The upper limit of reproductive ability for an organism when conditions in the environment are perfect.

Environmental Resistance

The sum of environmental factors like predation, competition, and disease that limit the growth of populations and maintain ecosystem balance.

Resource Supplies

The availability of materials, goods, or services that can be used to support life, industry, or economic activity.

Replacement-level Fertility

The fertility rate that maintains a population's size across generations, usually about 2.1 children per woman in most developed countries.