What Sources of Information Does a Manufacturing Company Use to Determine

question 68

Multiple Choice

What sources of information does a manufacturing company use to determine cost of goods sold?

• A)only the sales budget
• B)only the cost of purchases budget
• C)the materials budget, the labour budget, and the overhead budget
• D)the sales and the cost of purchases budget

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Definitions:

Finished Goods Inventory

Completed products that are ready to be sold but have not yet been sold to customers.

Product Costs

Costs directly tied to the creation of a product, including raw materials, labor, and manufacturing overhead.

Manufacturing Process

A sequence of operations and processes designed to create a specific product from raw materials or components.

Balance Sheet

A list of the assets, liabilities, and stockholders’ equity as of a specific date, usually at the close of the last day of a month or a year.