Assume No Beginning WIP Inventory

question 65

Multiple Choice

Assume no beginning WIP inventory. The ending WIP inventory is 30% complete for materials. The total number of equivalents for materials would be

• A) less than the units completed.
• B) less than the units started.
• C) equal to the units completed.
• D) equal to the units started.

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Definitions:

Pint

A unit of volume or capacity used in liquid measure, equal to one-half of a quart or approximately 473 milliliters in the United States.

Marginal Cost

The incremental cost of manufacturing one more unit of a product or service.

Marginal Benefit

The enhanced satisfaction or advantage experienced from the consumption of one extra unit of a product or service.

Economic Perspective

A viewpoint that analyzes individuals' decisions based on costs, benefits, and rational self-interest within the framework of scarcity and resource allocation.