A Costing Method That Involves Ongoing Efforts for Continuous Improvement

question 60

Short Answer

A costing method that involves ongoing efforts for continuous improvement to reduce product costs,increase product quality and improve the production process after manufacturing activities have begun is referred to as ______________________________.

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Definitions:

Supplies Account

An account that tracks the cost of supplies on hand and consumed by a business, which can be adjusted through adjusting entries for accurate financial reporting.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate income and expenditure to the correct period.

Prepayment Accounts

Accounts used to record expenses that have been paid in advance and are recognized incrementally as expenses over time.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, including assets, liabilities, and shareholders' equity.