Six Basic Colours Are to Be Used in Decorating a New

question 120

Multiple Choice

Six basic colours are to be used in decorating a new condominium. They are to be applied to a unit in groups of four colours. One unit might have gold as the principal colour, blue as a complementary colour, red as the accent colour and touches of white. Another unit might have blue as the principal colour, white as the complimentary colour, gold as the accent colour and touches of red. If repetitions are not permitted, how many different units can be decorated?

• A) 360
• B) 25
• C) 125
• D) 1,296

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Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during a period to determine the value of inventory.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the costs necessary to convert raw materials into finished goods.

Weighted-Average Method

An inventory costing method that calculates cost of goods sold and ending inventory based on the average cost of all goods available for sale.

Cost Per Equivalent Unit

A calculation used in process costing to allocate costs to partially completed units, considering them as fractions of whole units.