An Unexpected Increase in the Demand for Accountants Will Lead

question 146

Multiple Choice

An unexpected increase in the demand for accountants will lead to

• A) an increase in their earnings and an expansion in the future supply of accountants.
• B) a decrease in the incentive of students to prepare for a career in accounting.
• C) a reduction in the current earnings of accountants, followed by a reduction in the future supply of accountants.
• D) a reduction in the employment of accountants but not their wage rates.

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Definitions:

Overhead Allocated

The process of distributing overhead costs to specific products, services, or departments based on a predetermined rate or method.

Weighted-Average Method

This method averages out the costs of inventory by adding the cost of all units available for sale and dividing by the total number of units.

Equivalent Units of Production

A concept in cost accounting used to allocate costs to partially completed goods, expressed in terms of fully completed units.

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, with the cost of these oldest items used for accounting purposes.