Use the Information Below to Answer the Following Question(s)

question 14

Multiple Choice

Use the information below to answer the following question(s) .Craft Concept manufactures small tables in its Processing Department.Direct materials are added at the initiation of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Before inspection, some units are spoiled due to non-detectable materials defects.Inspection occurs at the end of the process.Spoiled units generally constitute 5 percent of the good units.Data for December are as follows:

-Normal spoilage totalled

• A)1,600 units.
• B)2,000 units.
• C)2,700 units.
• D)1,920 units.
• E)1,700 units.

---

Definitions:

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Credit Report

A document that contains a detailed history of an individual's or company's credit activities and current credit situation.

Risk Assessment

The identification, evaluation, and estimation of the levels of risks involved in a situation, followed by the coordination of resources to minimize, monitor, and control the probability or impact of unfortunate events.

Turnover Delineation

The process of defining and categorizing the turnover rates within a company or organization to understand how often assets or staff are being replaced.