What Is Work in Process Inventory Generally Described As

question 95

Multiple Choice

What is work in process inventory generally described as?

• A) Costs applicable to units that have been started in production but are only partially completed
• B) Costs associated with the end stage of manufacturing that are almost always complete and ready for customers
• C) Costs strictly associated with direct labor
• D) Beginning stage production costs associated with labor costs dealing with bringing in raw materials from the shipping docks

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Definitions:

Nonrefundable Up-Front Fees

Payments made upfront for services that will not be returned, even if the service or product is not used or delivered as expected.

GAAP

Generally Accepted Accounting Principles; a set of accounting standards and practices used to prepare financial statements in the U.S.

Service Contract

A service contract is a legally binding agreement between two parties where one agrees to provide a specified service to the other for a payment.

SEC

The U.S. Securities and Exchange Commission, a federal agency that regulates the securities markets and protects investors.