When Using a Standard Costing System,which of the Following Should

question 31

Multiple Choice

When using a standard costing system,which of the following should be recorded when direct materials are transferred to the production floor?

• A)Debit raw materials inventory for the actual amount at the standard price and credit work in process for the actual amount at the standard price.
• B)Debit raw materials inventory for the standard amount at the standard price and credit work in process for the actual amount at the actual price with a debit or credit to direct material quantity variance.
• C)Credit raw materials inventory for the standard amount at the standard price and debit work in process for the standard amount at the actual price with a debit or credit to direct material quantity variance.
• D)Credit raw materials inventory for the actual amount at the standard price and debit work in process for the standard amount at the standard price with a debit or credit to direct material quantity variance.

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Definitions:

Punishment

A penalty or negative consequence imposed for disobedience, wrongdoing, or other undesirable behavior.

Positive Reinforcement

A technique in behavior management that involves rewarding a desired behavior, thereby increasing the likelihood that the behavior will occur again.

Negative Reinforcement

A method of increasing the probability of a behavior by removing or avoiding a negative condition or stimulus following the desired behavior.

Extinction

In psychology, the diminishing of a conditioned response, occurring when the reinforcement no longer follows the conditioned stimulus; in biology, the end or dying out of a species.