An Approved Purchase Requisition Form Authorizes Shipment of Goods to Customers

question 68

True/False

An approved purchase requisition form authorizes shipment of goods to customers.

---

Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant component of finished goods.

Work in Process Inventory

Work in process inventory includes partially completed goods that are still in the production process at the end of a period.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.