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

question 40

Multiple Choice

When using a standard costing system,which of the following should be recorded to transfer

• A)Debit finished goods for actual cost and credit work in process for actual cost
• B)Debit finished goods for standard cost and credit work in process for standard cost
• C)Debit finished goods for standard cost and credit work in process for actual cost
• D)Debit finished goods for actual cost and credit work in process for standard cost

---

Definitions:

Basis

In tax terms, it refers to the amount of a taxpayer's investment in property for tax purposes, used to calculate gain or loss on the sale or disposition of the property.

Inventory

Assets that are held for sale in the ordinary course of business, or in the process of being produced for such sale, or in the form of materials to be consumed in the production process.

Sole Proprietor

An individual who owns and operates a business by themselves, without forming a corporation or a partnership, bearing full responsibility for the business's debts and obligations.

Schedule C

A form used by self-employed individuals or sole proprietors to report their business income and expenses to the IRS.