When Using the Moving-Average Cost Formula with a Perpetual System

question 42

Multiple Choice

When using the moving-average cost formula with a perpetual system,

• A) a weighted-average cost is calculated at year end.
• B) a new unit cost is calculated each time a sale is made.
• C) a new unit cost is calculated each time a purchase is made.
• D) a new unit cost is calculated both when a sale is made and when a purchase is made.

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Definitions:

Phrenology

An outdated and discredited theory that suggested the shape and size of the skull could determine a person's personality and mental abilities.

Wilhelm Wundt

A German physiologist and psychologist who is considered one of the founders of modern psychology; established the first psychology laboratory.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.