A Fictitious Demand Destination Created to Arrive at a Balanced

question 83

Multiple Choice

A fictitious demand destination created to arrive at a balanced transportation problem (i.e.,total demand = total supply) is called ______.

• A)dummy supply destination
• B)dummy demand destination
• C)dummy supply source
• D)fictitious demand destination

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Definitions:

Work in Process Account

An inventory account that tracks the costs of products in various stages of completion but not yet finished.

Manufacturing Overhead

The indirect costs associated with manufacturing, exclusive of direct materials and direct labor expenses, necessary to produce goods.

Allocation Base

A criterion or measure used for allocating costs to cost objects, based on factors such as time, output, or activity level.

Job-Order Costing

An accounting method that tracks costs individually for each job, suitable for manufacturing jobs that are distinct and not identical.