If the Stock of Money Is $200 Billion, Velocity Is

question 13

Multiple Choice

If the stock of money is $200 billion, velocity is 5, and the price level is 5, what is income?

• A) $8 billion
• B) $40 billion
• C) $200 billion
• D) $5,000 billion

Distinguish between the weighted-average and first-in, first-out (FIFO) methods of process costing and the implications on equivalent units calculation.

Understand the journal entries associated with transactions in a process costing system.

Realize the role of materials, labor, and overhead (conversion costs) in the computation of equivalent units and overall product cost in a process costing environment.

Analyze the differences and applications of the direct and step-down methods of service department cost allocation.