Rounding Is Often Necessary to Make the Production Report Cumulative

question 72

Multiple Choice

Rounding is often necessary to make the Production Report cumulative cost total agree to the total costs accounted for. In the following periods, the amount of the adjustment is either added to or subtracted from the in work in process.

• A)direct materials
• B)direct labor
• C)manufacturing overhead
• D)credit entry

---

Definitions:

Countercurrent Exchange

A mechanism in which fluids flow in opposite directions, exchanging properties (such as heat or chemical constituents) to maximize transfer rates.

Gills

Respiratory organs in certain aquatic organisms, allowing them to extract oxygen from water.

Gases

Substances that are in the state of matter characterized by having neither a defined volume nor shape, expanding to fill their container.

Terrestrial

Terrestrial refers to things relating to the Earth or living or growing on land as opposed to water or air.