To Obtain a Slightly More Accurate Measure of Net Income,Gabrielli,Inc

question 161

Multiple Choice

To obtain a slightly more accurate measure of net income,Gabrielli,Inc.,has determined that it must hire two full-time accountants.If it decides against the hiring,it has followed the convention of

• A) full disclosure.
• B) verifiability.
• C) consistency.
• D) cost-benefit.

---

Definitions:

Work in Process

Inventory that includes items in the production process but not yet completed or ready for sale.

Production

The process of creating goods or services by combining labor, materials, and machinery.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products by estimating overhead costs before production begins.

Machine Hours

Machine Hours represent a measure of the amount of time a machine is operated, used in costing, and operational efficiency analysis.