A College Must Decide If It Wants to Offer More

question 199

True/False

A college must decide if it wants to offer more evening and weekend classes.This decision involves answering the economic question of "for whom to produce."

---

Definitions:

First-In, First-Out Method

An inventory valuation method where the oldest inventory items are recorded as sold first, with the cost of these oldest items used for accounting purposes.

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns the average cost to ending inventory and cost of goods sold.

Step-Down Method

An indirect method of cost allocation that allocates costs of service departments to producing departments in a sequential manner.

Service Department Cost Allocation

The process of assigning indirect costs from service departments (like maintenance or HR) to producing departments based on their usage of services.