Which Account Is Debited If Materials Costing $100,000 Are Sold

question 18

Multiple Choice

Which account is debited if materials costing $100,000 are sold?

• A) Revenues account
• B) Work-in-Process Control account
• C) Materials Control account
• D) Cost of Goods Sold account

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Definitions:

Forgone Entrepreneurial Income

The potential income an entrepreneur misses out on when choosing to start their own business rather than working for wages.

Production Costs

Expenses related to the manufacture of goods or delivery of services, including materials, labor, and overhead.

Average Product

The output per unit of input, calculated by dividing total product by the quantity of input.

Labor

The physical and mental effort used in the production of goods and services.