Work in Process Inventory Decreases When

question 98

Multiple Choice

Work in Process Inventory decreases when

• A)Raw materials are purchased.
• B)Raw materials are used.
• C)Products are finished.
• D)Products are sold.

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Definitions:

Standard Costing System

An accounting method that assigns predetermined costs to goods and services, used to control costs and measure performance.

Fixed Overhead

Regular, ongoing expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Standard Costing

An accounting method that applies estimated costs to product costs for budgeting purposes and cost control.

Flexible Budget

A budget that adapts or changes based on the fluctuations in a business's activity or volume level.