Cost Accounting Controls Are Those Related to the Physical Inventory

question 52

Multiple Choice

Cost accounting controls are those related to the physical inventory and the consequent costs from the point at which

• A) materials are ordered for purchase until the finished product is sold.
• B) the customer's order is received until the finished product is shipped.
• C) raw materials are requisitioned until the finished product is sent to storage.
• D) raw materials are requisitioned until the finished product is completely manufactured.

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Definitions:

Initial Investment

The amount of money used to start a new business venture, project, or investment.

Natural Resources

Raw materials and components found in the environment that can be used for economic gain, such as minerals, forests, water, and land.

Final Goods and Services

Goods and services sold to final, or end, users.

Entrepreneurial Ability

Entrepreneurial ability involves the skills and qualities that enable an individual to identify opportunities, take risks, and organize resources effectively to start and manage a business.