To Say That There Is a Scarcity of Gold Means

question 87

Multiple Choice

To say that there is a scarcity of gold means that

• A) gold prices will rise.
• B) there is not enough gold to satisfy people's demand for it at a zero price.
• C) there are very few substitutes for gold.
• D) gold is very expensive.
• E) the demand for gold is changing.

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Definitions:

Equivalent Unit

A measurement used in process costing that converts partially completed units into an equivalent number of fully completed units to accurately measure the output of a production process.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Conversion Costs

Conversion costs are the expenses required to convert raw materials into finished products, including labor and overhead costs.

Equivalent Units

A concept in costing used to equate the amount of work done on partially finished goods to an equivalent number of fully finished units.