Which of the Following Is Not an Approach to Compute

question 51

Multiple Choice

Which of the following is not an approach to compute equivalent units?

• A) Weighted average.
• B) Last-in, first-out.
• C) First-in, first-out.
• D) All of these approaches can be used.

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Definitions:

Average Fixed Costs

The costs of production that remain constant regardless of output level, when divided by the amount of output generated.

Average Fixed Costs

The fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced, which decreases as production increases.

Total Variable Costs

The sum of all costs that vary with the level of output, such as materials and labor, excluding fixed costs like rent or salaries.

Total Costs

The sum of all expenses a business incurs to produce or sell its products or services, including fixed and variable costs.