Explain the Difference Between Consumer Goods and Business Goods

question 106

Essay

Explain the difference between consumer goods and business goods. Why are some products
difficult to categorize as one or the other? Give an example of a business good, a consumer good, and a good that is difficult to categorize.

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Definitions:

Weighted Average

A calculation method that takes into account the varying degrees of importance of the numbers in a data set, resulting in a figure that represents the overall effect.

Average Unit Cost

The total cost of goods available for sale divided by the number of units available for sale, used to value inventory.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.