An Important Factor in the Decline of the U

question 169

Multiple Choice

An important factor in the decline of the U.S. textile industry over the past 100 or so years is

• A)foreign competitors that can produce quality textile goods at low cost.
• B)lower prices of goods that are substitutes for clothing.
• C)a decrease in Americans' demand for clothing, due to increased incomes and the fact that clothing is an inferior good.
• D)the fact that the minimum wage in the U.S. has failed to keep pace with the cost of living.

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Definitions:

Conversion Costs

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

Weighted-Average Method

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

Cost Per Equivalent Unit

A calculation used in process costing to allocate costs to partially completed units, considering them as fractions of whole units.

Ending Work

The work in process inventory that is yet to be completed at the end of an accounting period.