A Summary of the Materials Requisitions Completed During a Period

question 14

Multiple Choice

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

• A) Work-in-Process and Cost of Goods Sold.
• B) Work-in-Process and Factory Overhead.
• C) Finished Goods and Cost of Goods Sold.
• D) Work-in-Process and Finished Goods.

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Definitions:

Net Income

Company's earnings following the deduction of all expenses and taxes from total revenue.

Capital Intensity Ratio

A financial metric that estimates the amount of investment in capital assets a company needs relative to its labor force to generate revenue.

Maximum Capacity

The highest level of output that a company can sustain to produce in a given period under normal conditions.

Proportional

Proportional refers to a relationship or distribution where quantities maintain the same relative size or ratio to each other, often applied in financial contexts like taxation or distribution of profits.