Cost Flow Is in the Reverse Order in Which Costs

question 178

Multiple Choice

Cost flow is in the reverse order in which costs were incurred when using

• A) weighted average
• B) last-in, first-out
• C) first-in, first-out
• D) average cost

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Definitions:

Utilization Rate

The percentage of capacity or resources that are being used effectively in operations.

Manufacturing Capacity

The maximum amount of products a factory can produce over a specific period, taking into account the physical space, machinery, and labor available.

Quality Rate

An indicator or metric that measures the quality of products, services, or processes, often expressed as a percentage.

Machinery

Refers to the machines or the mechanical devices that are used in manufacturing or other industrial operations.