The Ending Balance of Which of the Following Accounts Can

question 93

Multiple Choice

The ending balance of which of the following accounts can be calculated by summing the totals of the open job-order cost sheets:

• A)Work in Process.
• B)Materials.
• C)Finish Goods.
• D)Cost of Goods Sold.

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Definitions:

Variable Cost

Variable cost refers to expenses that fluctuate with the level of output or production activity, such as raw materials and direct labor costs.

Fixed Costs

Fixed costs are expenses that do not change with the level of production or sales activity, such as rent, salaries, or insurance, remaining constant regardless of business operations.

Contribution Margin

The difference between sales revenue and variable costs, showing how much sales contribute to covering fixed costs and generating profit.

Variable Costs

Expenses that fluctuate with changes in production volume or service levels, such as materials and labor costs.