Output That Could Have Been Produced Last Year by Those

question 7

Multiple Choice

Output that could have been produced last year by those resources that were unemployed

• A)has to be made up by producing more this year.
• B)demands a sense of trust that a recovery cycle will double output in the following year.
• C)adds to long-run cost because of the need for retraining.
• D)is lost forever and can never be made up.

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Definitions:

Weighted-Average Method

The weighted-average method is an inventory costing approach that calculates the cost of ending inventory and the cost of goods sold based on the weighted average of all costs of items available for sale during the period.

Fitting Department

A dedicated section in a manufacturing or production facility where parts are assembled, adjusted, or finished to meet specific requirements or specifications.

Conversion Costs

The sum of labor and overhead costs that are incurred to convert raw materials into finished products.

Weighted-Average Method

A cost accounting method that averages the costs of goods available for sale or production, weighting by the quantities at each cost.