If the Total Manufacturing Costs Are Greater Than the Cost

question 56

Multiple Choice

If the total manufacturing costs are greater than the cost of goods manufactured which of the following is correct?

• A) Work in Process Inventory has increased.
• B) Finished Goods Inventory has increased.
• C) Work in Process Inventory has decreased.
• D) Finished Goods Inventory has decreased.

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Definitions:

Expensive Financing

Funding options for companies or individuals that come with high costs, often due to high interest rates or fees.

Credit Periods

The time frame allowed by a seller for a buyer to pay for goods or services received, usually measured in days.

Auto Parts Stores

Retail outlets that specialize in selling parts and accessories for automobiles, trucks, and other vehicles.

Florists

Businesses or individuals specializing in arranging and selling flowers and ornamental plants.