Which of the Following Statements About Inventory Costs Is True

question 126

Multiple Choice

Which of the following statements about inventory costs is true?

• A) Factory overhead consists of manufacturing costs other than direct materials and direct labour.
• B) Net realizable value is the expected sales price plus selling costs.
• C) FIFO Reserve is a contra sales account for the excess of FIFO over weighted-average inventory.
• D) Purchases discounts increase sales revenue to arrive at net sales.

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Definitions:

Embryonic Period

A stage in prenatal development occurring from the 2nd to the 8th week after fertilization during which major organs and structures begin to develop.

Developing Fetus

Describes the growth and development stages of an unborn baby inside the mother's womb.

Age of Viability

The point in fetal development at which the fetus may survive outside the uterus with medical support, typically around 24 weeks of pregnancy.

Seventh Month

The period extending from the 1st to the end of the 31st day of the seventh month (July in the Gregorian calendar), or inferring the seventh month of pregnancy, indicating advanced pregnancy stage.