Weighted-Average Cost Will Generate Results That Are

question 29

Multiple Choice

Weighted-average cost will generate results that are:

• A) higher value that LIFO.
• B) higher value than FIFO.
• C) in between LIFO and FIFO.
• D) higher value that LIFO and FIFO.

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Definitions:

Supply Curve

A graph displaying the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to provide, holding all else equal.

Diminishing Marginal Product

A principle stating that as more of a variable input is added to a fixed input, the additional output produced from each additional unit of the variable input eventually decreases.

Marginal Costs

The supplementary cost arising from the manufacture of an extra unit of a good or service.

Variable Inputs

Inputs that can be adjusted in the short term to alter the level of output in the production process.