ABC Produces Ping Pong Balls Using a Three-Step Process That

question 161

Multiple Choice

ABC produces ping pong balls using a three-step process that includes molding,coloring and finishing.Which of the following accounts is credited for manufacturing overhead?

• A)WIP inventory-molding
• B)WIP inventory-finishing
• C)WIP inventory-coloring
• D)Manufacturing Overhead

---

Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used in capital budgeting.

Capital Rationing

A strategic financial approach where a company restricts its spending on new projects due to limited resources.

Net Present Value

A performance indicator for assessing an investment's profit, derived by taking away the current value of cash disbursements from the current value of cash incomes during a specific period.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.