The Cost of Inventory That Is Still on Hand Is

question 12

Multiple Choice

The cost of inventory that is still on hand is called:

• A)cost of goods sold,an expense that appears on the balance sheet.
• B)inventory,a long-term asset that appears on the balance sheet.
• C)inventory,a current asset that appears on the balance sheet.
• D)purchases,a current asset that appears on the balance sheet.

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Definitions:

Machining Department

A division within a manufacturing facility where machining processes such as cutting, drilling, or shaping are performed.

Finishing Department

The sector in a manufacturing process where products undergo final treatments, such as polishing, painting, or packaging, before being sold or shipped.

Predetermined Overhead Rate

A calculated rate used to assign manufacturing overhead costs to individual products, based on estimated or known factors.

Direct Labor-Hours

The total hours worked by employees directly involved in the manufacturing process or delivery of services.