According to the UCC, a Computer Purchased by a CPA

question 60

True/False

According to the UCC, a computer purchased by a CPA for use in her office will be classified as inventory.

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Definitions:

Equivalent Units

A concept in cost accounting used to apportion costs in process costing, based on the stage of completion.

Ending Work In Process

The value of goods that are partially completed at the end of an accounting period, not yet ready for sale.

Equivalent Units

A concept in cost accounting used to express the amount of materials or labor in terms of fully completed units.

Conversion Costs

The combination of direct labor costs and manufacturing overhead costs that are incurred to convert raw materials into finished products.