When Determining Costs of Jobs How Does a Company Account

question 90

Multiple Choice

When determining costs of jobs how does a company account for indirect materials?

• A) It is added to work in process as used.
• B) It remains part of raw materials inventory.
• C) It is transferred out of raw materials into manufacturing overhead when used.
• D) It is transferred out of raw materials into work in process as used.

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Definitions:

Supply Chain Financial Impact

The effect that supply chain operations and efficiency have on the financial health and profitability of a company.

Supply Chain Costs

All expenses associated with the production and delivery of a company's products from raw materials sourcing to final delivery to the customer.