The Fact That Minnie Spends Most of Her Time Measuring

question 314

Multiple Choice

The fact that Minnie spends most of her time measuring costs and checking to see if departments are staying within their budgets suggests that she is often involved in

• A) auditing.
• B) managerial accounting.
• C) bookkeeping.
• D) departmental certification.

---

Definitions:

First-In, First-Out

A rephrased definition: An inventory management strategy that assumes the items stocked first are the first to be sold, used to manage costs and inventory levels.

Inventory Costing

This is a method used to value inventory, including methods like FIFO (First-In, First-Out), LIFO (Last-In, First-Out), and weighted average cost.

Direct Materials

Raw materials that can be directly traced to the production of a specific good or service, considered part of the product's cost.

Process Cost System

A method of accounting used for industries where production is continuous, allocating costs to products based on the processes they go through.