Products That Have Had Some Processing,are Used Directly in the Production

question 62

Multiple Choice

Products that have had some processing,are used directly in the production of other products,and do not retain their identity in the final product are called:

• A) raw materials
• B) supplies
• C) processed materials
• D) component parts
• E) replacement parts

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Definitions:

Consignment

A business arrangement wherein goods are left in the possession of an authorized third party to sell, but ownership remains with the supplier until items are sold.

Ending Inventory

The total value of all inventory held by a company at the end of an accounting period.

FOB Destination

A shipping term indicating that the seller is responsible for the freight and other shipping charges until the goods reach the buyer's location.

Net Income

The amount of earnings remaining after all expenses, including taxes and interest, have been deducted from total revenues.