Regardless of Whether Previous Departments Used the Weighted-Average or the FIFO

question 138

Multiple Choice

Regardless of whether previous departments used the weighted-average or the FIFO method, all transferred-in costs during a given period are carried at

• A)the cost at which it was transferred in.
• B)the previous period's costs.
• C)multiple unit-cost figures.
• D)the final cost.
• E)one average unit-cost.

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Definitions:

Total Variable Costs

The sum of all costs that vary with the level of production or sales, such as materials and labor.

Volume Of Activity

A term related to the level of business operations or transactions undertaken by a company within a specific period.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.

Production Level

The quantity of goods a company produces within a specified period, usually in relation to its capacity.