In a Standard Cost System,the Initial Debit to an Inventory

question 102

Multiple Choice

In a standard cost system,the initial debit to an inventory account is based on:

• A)standard cost rather than actual cost.
• B)actual cost rather than standard cost.
• C)actual cost less the standard cost.
• D)standard cost less the actual cost.

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Definitions:

Product Specifications

Detailed descriptions of a product’s requirements, dimensions, materials, and performance criteria, used as standards for production and quality assurance.

JIT Environment

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs, through just-in-time inventory management.

Layout Tactic

A specific plan or method employed to arrange physical resources in a production or service facility.

Work Cells

An arrangement of resources in a manufacturing environment to improve efficiency by having all necessary equipment and materials in close proximity.