Inventory Refers to The

question 64

Multiple Choice

Inventory refers to the:

• A)merchandise held for sale in the normal course of business.
• B)materials sold during the year.
• C)fixed assets purchased to assist the production process.
• D)claims arising from the purchase of raw material.

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Definitions:

Completed During

Usually refers to the tasks, projects, or productions that are finished within a specific period.

Equivalent Units

A concept used in cost accounting to indicate a quantity of production expressed in terms of fully completed units, calculated to measure and assign costs to partially completed goods.

Material Costs

Material Costs are the expenses incurred for the materials that are used in the production process of goods or services.

First-In, First-Out

An inventory valuation method which assumes that the first items purchased or manufactured are the first ones sold.