Which Beginning and Ending Inventories Appear on a Cost of Goods

question 52

Multiple Choice

Which beginning and ending inventories appear on a cost of goods manufactured schedule?

• A)raw materials only
• B)raw materials and work in process only
• C)raw materials, work in process, and finished goods
• D)work in process only

---

Definitions:

Absorption Costing

A costing approach in which all manufacturing costs are charged to the product.

Variable

An element, feature, or factor that is subject to change, often used in financial analysis, statistics, and scientific research.

Absorption

In accounting, it refers to the process of incorporating all costs of production into the value of a product, including both direct and indirect expenses.

Margin Of Safety Ratio

A financial metric that measures the difference between actual or projected sales and the break-even point.