Under Which of the Following Situations Is Finished Goods Inventory

question 174

Multiple Choice

Under which of the following situations is finished goods inventory debited and work in process inventory credited?

• A)Transfer of goods to the finished goods storeroom
• B)Purchase of goods on account
• C)Transfer goods out of the factory
• D)Transfer of material to work in process inventory

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Definitions:

Price Elastic

Describes how sensitive demand for a product or service is to changes in its price; high elasticity indicates significant demand change with price fluctuations.

Nondiscretionary

Pertaining to expenses that are essential and not subject to personal choice, such as food, housing, and utilities.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at different prices.

Consumer Incomes

The financial resources available to consumers, influencing their ability to purchase goods and services.