A Bill-Of-Materials File Contains

question 16

Multiple Choice

A bill-of-materials file contains:

• A) Invoices for materials that must be paid in this period.
• B) Lists of materials required to produce end item products.
• C) Accounts payable for materials.
• D) A and B.

---

Definitions:

Parent Company

A corporation that owns a controlling share of the stock in another company, making the latter a subsidiary.

Fair Value Method

An accounting approach that measures and reports assets and liabilities on the basis of their estimated or actual fair market price.

Carrying Value

The book value of assets and liabilities on a company's balance sheet, excluding market value fluctuations.

Common Stock

Equity securities representing ownership in a corporation, with voting rights and potential dividends.