In a Just-In-Time Costing System, the Entry to Record Direct

question 72

Multiple Choice

In a just-in-time costing system, the entry to record direct material purchases on account would include which of the following?

• A) Debit to raw and in process inventory
• B) Credit to cash
• C) Debit to materials inventory
• D) Credit to raw and in process inventory

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Definitions:

Vertical Contracts

Agreements between firms at different levels in the supply chain, such as a manufacturer and a retailer.

Benefits

Advantages or payments provided typically by employers or government programs to support well-being, such as health insurance or pension.

Vertical Contracts

Agreements between firms at different levels of the supply chain, such as between a manufacturer and a retailer.

Costly Activities

Actions or tasks that require significant expenditure of resources, such as time, money, or effort.