Which of the Following Is the Correct Formula to Calculate

question 147

Multiple Choice

Which of the following is the correct formula to calculate weighted-average unit cost?

• A)Weighted-average unit cost = Cost of goods available for sale + Number of units available
• B)Weighted-average unit cost = Cost of goods available for sale × Number of units available
• C)Weighted-average unit cost = Cost of goods available for sale - Number of units available
• D)Weighted-average unit cost = Cost of goods available for sale ÷ Number of units available

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Definitions:

Bullwhip Measure

A metric used to quantify the increase in fluctuation at higher tiers of a supply chain caused by small changes in demand at the consumer end.

Bullwhip Effect

A phenomenon in supply chains where minor fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesaler, manufacturer, and supplier levels.

Bullwhip Effect

An occurrence within supply chain management where minor changes in retail demand lead to increasingly significant changes in demand for wholesalers, distributors, and manufacturers.

Dampening

The process of reducing the amplitude or intensity of fluctuations or oscillations in a system or signal.