Daenna Resides in Manitoba and Is Creating a New Business

question 9

Multiple Choice

Daenna resides in Manitoba and is creating a new business entity.She has not settled on a name.She does intend to carry on business in the Western provinces and will be importing goods from Scandinavian countries in the near term.Which of the following will most likely accommodate Daenna's business needs and expectations,as well as legislative requirements?

• A) 36993636 Canada Corp.
• B) 12361239 Manitoba Inc.
• C) 36993636 Incorporated
• D) Daenna's Import Co.

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Definitions:

Process Costing

An accounting methodology used to allocate the costs of producing products that are indistinguishable from each other and are produced in a continuous process.

Weighted-Average Method

A method for valuing inventory that determines the cost of goods sold and the final inventory value by computing the average cost of all products available for sale throughout the period.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, which are incurred to convert raw materials into finished goods.

Process Costing

A costing method used in mass production where costs are assigned to processes or departments, not individual units.