The Fact That People Can Write Drafts (Checks) from Many

question 102

Multiple Choice

The fact that people can write drafts (checks) from many stock and money market accounts has:

• A)increased the transactions demand for money.
• B)decreased the transactions demand for money.
• C)not affected the transactions demand for money.
• D)increased the cost of converting non-money assets to a means of payment.

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Definitions:

Conversion Costs

The combined costs of direct labor and manufacturing overhead necessary to convert raw materials into finished goods.

Weighted-Average Method

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

Materials Cost

The cost of the raw materials used in the production of goods.

Weighted-Average Method

An inventory costing method where costs of goods sold and ending inventory consist of a weighted average of all purchases and manufactured goods during the period.