Under a Standard Costing System,while Recording the Use of Direct

question 152

Multiple Choice

Under a standard costing system,while recording the use of direct materials in the production process,Work-in-Process Inventory is debited with the ________.

• A)standard quantity for actual production times standard cost per unit of raw material.
• B)standard quantity for actual production times actual cost per unit of raw material.
• C)actual quantity times standard cost per unit of raw material.
• D)actual quantity times actual cost per unit of raw material.

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Definitions:

Economy

The system of production, consumption, and distribution of goods and services in a particular society or geographical area.

Production

The process of creating goods and services through the combination of labor, materials, energy, and technology.

Distribution

The process by which goods, services, or resources are spread or allocated across different areas or among various groups.

Exchange

The act of giving one thing and receiving another, particularly goods or services, in return either through barter or monetary purchase.