A Disadvantage of the Barter System Is That

question 22

Multiple Choice

A disadvantage of the barter system is that

• A)no trade occurs.
• B)people must produce all their own food, clothing, and shelter.
• C)the opportunity to specialize is greatly reduced.
• D)gold is the only unit of account.

---

Definitions:

Conversion Costs

The costs incurred to convert raw materials into finished products, typically including labor and overhead expenses.

Work In Process

Inventory that includes goods partially through the production process but not yet completed.

Weighted Average

A calculation that takes into account the varying significance of different data points, more heavily influencing the average with more important or larger values.

FIFO

An inventory valuation method where the first items produced or purchased are the first ones considered sold, standing for "First-In, First-Out."