The Cost of Direct Materials Purchased on Account Is Expensed

question 62

Multiple Choice

The cost of direct materials purchased on account is expensed at the time the:

• A) goods made in the manufacturing process are sold.
• B) cash is paid to settle the associated accounts payable.
• C) manufacturing process is complete.
• D) materials are purchased.

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Definitions:

Process Model

A representation or simulation of an actual process, detailing the steps and sequences involved, often used for analysis, optimization, and communication.

Logistics and Supply Chain Needs

The requirements and activities involved in the planning, control, and movement of materials, goods, and information from origin to consumption.

Business Practice

A method, procedure, or routine used in the conduct of an organization's operations to achieve its objectives.