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

question 1

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When using the weighted-average cost method to determine the cost of inventory sold, the weighted-average cost per unit is calculated as the cost of goods available for sale divided by the number of units available for sale.

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Definitions:

3-D Printers

3-D printers are machines that create three-dimensional objects by adding material layer by layer, based on digital models.

Third Industrial Revolution

The period characterized by the digital revolution and the use of electronics and information technology to automate production.

Law of Diminishing Returns

A principle stating that as one factor of production is increased while others are held constant, there comes a point at which the marginal gain in output begins to decrease.

Long Run

A period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

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