The Demand for a Business Product That Results from the Demand

question 154

Multiple Choice

The demand for a business product that results from the demand for a consumer product is referred to as

• A)sequential demand.
• B)selective demand.
• C)primary demand.
• D)secondary demand.
• E)derived demand.

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit of inventory, used to calculate cost of goods sold and ending inventory.

First-In, First-Out

An inventory valuation method where the oldest items in inventory are sold or used first.

Equivalent Units

A concept in cost accounting used to calculate the work done on partially completed goods, expressed in terms of fully completed units.

Cost Reconciliation Report

A document used to reconcile and verify the costs incurred by a department or project against the budgeted or expected costs.