Explain, in Your Own Words, What Is Meant by "Level

question 42

Essay

Explain, in your own words, what is meant by "level material use." In what types of facilities is it appropriate?
Explain.

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Definitions:

Weighted-average

A calculation that takes into account both the quantity and the significance of the items being averaged.

FIFO

A cost flow assumption for inventory and financial accounting where the first goods purchased or produced are the first to be sold.

FIFO Inventory

An inventory costing method that assumes the items purchased or produced first are sold first, thereby remaining inventory consists of items added most recently.