_____________________ Checks to See If the Costs to Account for Are

question 23

Short Answer

_____________________ checks to see if the costs to account for are exactly assigned to inventories.

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Definitions:

Raw Materials

Basic materials that are used in the manufacturing process to produce goods or finished products.

Product Costs

The costs directly associated with the creation of a product, including direct materials, direct labor, and manufacturing overhead.

Work in Process

Inventory category that includes goods partially through the production process, not yet ready for sale.

Finished Goods

Products that have completed the manufacturing process and are ready for sale to customers.