The Amount of Raw Material Purchased in a Period May

question 78

Multiple Choice

The amount of raw material purchased in a period may be different than the amount of material used that period because

• A)the number of units sold may be different from the number of units produced.
• B)finished goods inventory may fluctuate during the period.
• C)the raw material inventory may increase/decrease during the period.
• D)companies often pay for material in the period after it is purchaseD.

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Definitions:

Standard Deviation

A numerical indicator used in statistics to represent the extent of scatter among data points.

Standard Deviation

A statistical measure that indicates the extent of deviation for a group as a whole, showing how much variation or dispersion exists from the average.

Cyclical Stock

A stock whose price is affected by macroeconomic or systematic changes in the overall economy.

Countercyclical Stock

Stocks that tend to move inversely to the economic cycle; they perform well when the economy is in a downturn.