Under Backflush Costing Approach Where Three Trigger Points Are Used

question 30

Multiple Choice

Under backflush costing approach where three trigger points are used (stage A, stage C, and stage D) , the purchase of materials is:

• A) credited to the Materials and In-Process Inventory Control account
• B) debited to the Materials and In-Process Inventory Control account
• C) debited to the Materials Inventory Control account
• D) ignored because the manufacturing process moves so quickly from acquisition of materials to the sale of the finished good

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Definitions:

Spanish Inquisition

An institution established by the Catholic Monarchs of Spain in 1478 to maintain Catholic orthodoxy within their kingdoms and used for the persecution of heretics and other religious minorities.

Dutch Revolt

The 16th-century rebellion in the Netherlands against the Spanish Empire, leading to the independence of the Dutch Republic.

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