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Table 2-7
Table 2-7 shows the output per month of two people, Fred and Barney. They can either devote their time to making pogo sticks or making unicycles.
-Refer to Table 2-7.What is Barney's opportunity cost of making a pogo stick?
Materials Costs
The direct costs associated with the raw materials used in the manufacturing of a product.
Weighted-Average
A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in inventory valuation.
Equivalent Units
A concept in process costing that converts partially completed units into a number of fully completed equivalent units.
Conversion Costs
Costs incurred to convert raw materials into finished products, which include direct labor and manufacturing overhead.
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