Excess Bags of Basic Commodities Such as Flour and Sugar

question 8

Multiple Choice

Excess bags of basic commodities such as flour and sugar that are stored in a restaurant's kitchen represent which of the following wastes?

• A) overproduction
• B) queues
• C) transportation
• D) inventory
• E) defective product

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Definitions:

Merchandise Inventory

Items purchased for resale to customers in the ordinary course of business, representing a current asset on the balance sheet.

Sales Discount

Amount a customer is allowed to deduct from the bill total for paying a bill during the discount period.

Revenue Account

An account in the general ledger that records the income generated by a company from its normal business operations.

Salaries Expense

The total compensation paid to employees, including wages, salaries, bonuses, and deducted taxes, for their work for a company during a specific period.