Which Inventory Record Is Best to Ensure That Appropriate Authorization

question 15

Multiple Choice

Which inventory record is best to ensure that appropriate authorization of storeroom issues has been granted?

• A) Receiving record
• B) Purchase order
• C) Invoice
• D) Requisition

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Definitions:

Work in Process Inventory

The account that tracks the costs associated with the production process that is not yet completed.

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale and assigns that average cost to the units sold.

FIFO Method

A method in accounting for managing inventories and financial matters where the first items placed in inventory are the first ones to be used or sold.

Equivalent Units

A concept used in cost accounting to express the amount of work done by an incomplete production process on units of output, converted into an equivalent number of fully completed units.