Which of the Following Is Not True of the Weighted-Average

question 47

Multiple Choice

Which of the following is not true of the weighted-average process-costing method?

• A) the method calculates the cost per equivalent unit of all work done to date regardless of the accounting period in which the work was done
• B) the costs in work in process (beginning work in process) when the period starts are not considered when calculating the weighted-average cost per equivalent unit
• C) the weighted-average cost is the total of all costs entering the Work in Process account divided by the total equivalent units in ending work-in-process inventory
• D) the costs to account for are equal to the beginning work in process plus the costs added to work in process during the same period

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Definitions:

Positive Profit

A financial gain that occurs when the revenues from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Tangent

A straight line that touches a curve at a single point without crossing it at that point.

Long-run Equilibrium

A state in a market where all firms are making normal profits, with no incentives for entry or exit, and all factors of production are variable.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.