An Executed Contract Is One That Is Fully Performed

question 75

True/False

An executed contract is one that is fully performed.

---

Definitions:

Beginning Work

Typically refers to the initial stages of a process or the starting inventory levels in manufacturing or production.

Conversion Cost

The total cost of converting raw materials into finished goods, combining direct labor and manufacturing overhead.

Direct Materials

Raw materials that can be directly identified and allocated to the production of specific goods or services.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of fully completed units for inventory valuation and cost analysis.