When You Took an I

question 16

Multiple Choice

When you took an I.Q.test last week,your score was 112.This week,taking the same test,your I.Q.was 96.This I.Q.test appears to lack

• A) validity.
• B) reliability.
• C) reactivity.
• D) generalizability.

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Definitions:

Equivalent Units

The concept used in cost accounting to convert partially completed goods into a number of complete units of output for inventory valuation.

Work in Process

Inventory consisting of items that are in the stages of being processed into finished goods but are not yet complete.

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit in inventory, calculated after each inventory purchase.

Equivalent Units

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