You Are Setting Up a New Company Using the Easy

question 21

Multiple Choice

You are setting up a new company using the Easy Step Interview. Which items of company information must you enter:

• A)Company address
• B)Company Tax ID number
• C)Employee information
• D)Company name

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Conversion Costs

The sum of labor and overhead expenses incurred in the process of converting raw materials into finished goods.

Work In Process

Goods and materials that are partially completed in the manufacturing process, representing an inventory category on the balance sheet.

Inventory

Raw materials, work-in-progress, and finished goods that are considered part of a business's assets that are ready or will be ready for sale.