At Equilibrium Expenditure, Unplanned Changes in Inventory

question 52

Multiple Choice

At equilibrium expenditure, unplanned changes in inventory

• A)must be negative.
• B)might be either positive or negative.
• C)must be positive.
• D)must be zero.

---

Definitions:

Direct Labor-Hours

The aggregate of hours spent by staff members who are directly engaged in producing merchandise or rendering a service.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, making it suitable for customized orders.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a particular activity base.

Machine-Hours

A measure of production time used in cost accounting, representing the number of hours that machinery is in operation during a given period.