When Using the Weighted-Average Cost Method to Determine the Cost

question 33

Multiple Choice

When using the weighted-average cost method to determine the cost of inventory sold,the weighted-average cost per unit is calculated as the:

• A) cost of goods available for sale divided by the number of units available for sale
• B) cost of goods sold divided by the average number of units in inventory
• C) cost of goods sold divided by the number of units sold
• D) cost of goods in ending inventory divided by the number of units in ending inventory

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Definitions:

Statistical Techniques

Mathematical methods applied to data for the purpose of analysis, interpretation, and presentation, used in various fields for informed decision-making.

Capable Process

A manufacturing or production process with the ability to produce outputs within pre-defined specifications and quality criteria reliably.

Operating Characteristics Curve

A graphical representation showing the behavior of a system, such as its true-positive rate versus false-positive rate, under various conditions.

Population Percent Defective

The percentage of items in a given population that do not meet the specified quality criteria, used as a measure of process quality.