Planning and Control Activities Are Concerned with Operating Resources on a Day-To-Day

question 18

True/False

Planning and control activities are concerned with operating resources on a day-to-day basis and
ensuring availability of materials and other variable resources in order to supply goods and
services which will fulfil customers' demands.

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Definitions:

Closing Inventory

The value of the goods remaining unsold at the end of an accounting period, which becomes the opening inventory for the next period.

Finished Goods

Goods that have gone through the entire manufacturing cycle and are prepared for customer acquisition.

Standard Costs

Preset costs for materials, labor, and overhead used to measure the performance of manufacturing activities against planned costs.

Variable Costing

A costing method where only variable costs are charged to product costs, with fixed costs treated as period costs.