Revenues Are

question 36

Multiple Choice

Revenues are:

• A)The same as net income.
• B)The excess of expenses over assets.
• C)Resources owned or controlled by a company.
• D)The increase in equity from a company's sales of products and services.
• E)The costs of assets or services used.

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Definitions:

Conversion Costs

The costs required to convert raw materials into finished products, typically consisting of direct labor and manufacturing overhead.

Equivalent Units

A concept used in cost accounting to normalize units of production for inventory costing purposes, taking into account partially completed units.

Work In Process

Inventory items that are in the production process but have not yet been completed or transformed into finished goods.

Conversion Costs

These are the combined costs of direct labor and manufacturing overhead that are incurred to convert raw materials into finished goods.