Which of the Following Entities Would Not Use Process Costing

question 19

Multiple Choice

Which of the following entities would not use process costing?

• A)Kellogg Company.
• B)Remodeling contractors.
• C)Steel mills.
• D)PepsiCo.
• E)All of the above would use process costing.

Understand the principles and applications of the perpetual and periodic inventory systems.

Recognize the impact of inventory management methods on financial statements and tax liabilities.

Determine the cost of inventory purchases and the effect of payment terms on inventory cost recording.

Identify the proper inclusion or exclusion of goods in transit, consigned goods, and goods out on consignment in inventories.

---

Definitions:

Income Effect

The change in consumption that results when a price change moves the consumer to a higher or lower indifference curve

Aggregate Demand

Aggregate demand represents the total demand for goods and services within an economy at a given overall price level and in a given time period.

Future Generations

Individuals or populations that will exist in the future, beyond the current members of society, whose interests are considered in long-term policy making.

Budget Deficit

A shortfall of tax revenue from government spending