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:

High-Dividend-Payout

Strategy by which a firm distributes a significant portion of its profits in the form of dividends to its shareholders.

Cash Payments

Transactions in which the exchange of goods or services is made with immediate transfer of cash from buyer to seller.

Company Projects

Specific initiatives or activities undertaken by a business to achieve certain goals, often involving investments and strategic planning.

Date of Record

The specific date set by a company on which the shareholders must be on the company's books in order to receive a dividend.