Operating Income Can Differ Materially Between the Results for the Weighted-Average

question 28

Multiple Choice

Operating income can differ materially between the results for the weighted-average and FIFO methods when:

• A)direct materials or conversion costs per unit vary significantly from period to period
• B)the physical inventory levels of work in process are large relative to the total number of units transferred out
• C)Neither of these answers is correct.
• D)Both of these answers is correct.

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Definitions:

Positive Reinforcement

A method of strengthening desired behavior by offering motivating incentives or rewards when the behavior is exhibited.

Extinction

A reinforcement contingency in which a behavior is followed by the absence of any consequence, thereby reducing the likelihood that the behavior will be repeated in the same or similar situations.

Negative Reinforcement

A type of conditioning where an undesirable outcome or event is removed following a behavior, increasing the likelihood of that behavior's occurrence in the future.

Social Cognitive Theory

A theoretical framework that emphasizes the importance of observational learning, social experiences, and environmental factors in the development of behaviors.