This Prenumbered Document Is Issued by the Production Function and Triggers

question 88

Multiple Choice

This prenumbered document is issued by the production function and triggers the manufacture of the company's product.

• A)Materials requisition
• B)Production order
• C)Job cost record
• D)Sales invoice

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Definitions:

Merchandise Inventory

Refers to products that a company holds in stock with the intention of selling them to customers. It is a current asset on the balance sheet.

Cost of Goods Sold

The direct costs attributable to the production or purchase of the goods sold by a company during a given period.

Supplies

Materials and items that are used in the day-to-day operations of a business but which do not form part of the final product.

Freight-in

Freight-in refers to the shipping cost associated with getting goods from the supplier to their location, which is part of the inventory cost.