Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A) Freight In is subtracted from Purchases to arrive at delivered cost of purchases.
• B) Another name that may be used for the Freight In account is "Transportation In."
• C) Freight charges that are listed on the invoice received from a supplier are not part of the total credit to Accounts Payable to record the credit purchase.
• D) The Freight In account is subtracted from Sales to get Net Sales.

Comprehend the purchase and usage process of raw materials in manufacturing.

Understand how to apply fixed and variable costs to the work in process inventory.

Analyze the financial implications of closing standard cost variances.

Grasp the concept of how transactions affect the Cash and Work in Process inventory accounts in a standard cost accounting system.

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Definitions:

Triangulation

A research method that involves using multiple data sources, theories, or methodologies to enhance the confidence in research findings.

Telegraphic Speech

A stage in language development where children communicate using short, simple combinations of words without grammatical filler.

Prelinguistic Vocalization

Sounds made by infants before they acquire language, including cooing and babbling, which are important for the development of communication skills.

Negative Instances

Examples or situations that do not conform to a particular rule or generalization, often used in learning and reasoning.