The Two Basic Costs Associated with Inventory Are Production Cost

question 65

True/False

The two basic costs associated with inventory are production cost and carrying cost.

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Definitions:

Crude Oil Refining

The industrial process of transforming crude oil into usable products such as fuel, gasoline, and diesel.

Perpetual Inventory

A method of accounting for inventory that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Subsidiary Ledgers

Detailed ledgers that contain information supporting entries recorded in a general ledger, such as accounts receivable or accounts payable details.

Job Order Costing

An accounting methodology used for assigning manufacturing costs to an individual product or batches of products, typically when each product's construction is sufficiently unique.