In the Circular Flow Diagram,________ Supply the Factors of Production,and

question 2

Multiple Choice

In the circular flow diagram,________ supply the factors of production,and ________ goods and services.

• A)households; sell
• B)households; buy
• C)firms; sell
• D)firms; buy

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Definitions:

Cost Reconciliation

Cost reconciliation is the process of analyzing and adjusting the differences between the actual costs incurred and the standard or budgeted costs to understand variances in manufacturing or production activities.

Process Costing

Process costing is a method of costing used by companies that produce similar or homogenous products, where costs are accumulated over a period and then allocated to units of product.

Weighted-Average Method

An inventory costing method that assigns an average cost to each unit of inventory, calculated by dividing the total cost of goods available for sale by the total units available.

Conversion Cost

Sum of direct labor and manufacturing overhead costs, representing the costs necessary to convert raw materials into finished goods.