The Costs Incurred by Merchants in Having to Change Product

question 14

Short Answer

The costs incurred by merchants in having to change product prices (such as the costs of reentering prices into computer systems) are referred to as ________ costs.

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Definitions:

Process Costing

An accounting methodology used to allocate costs to units of product in continuous processes or situations where the products are indistinguishable from each other.

Equivalent Units

A concept in cost accounting used to apportion costs in process costing, based on the stage of completion.

Ending Work In Process

The value of goods that are partially completed at the end of an accounting period, not yet ready for sale.

Equivalent Units

A concept in cost accounting used to express the amount of materials or labor in terms of fully completed units.