A Backflush Costing System That Journalizes Only When Raw Materials

question 57

Multiple Choice

A backflush costing system that journalizes only when raw materials are purchased and when finished goods are sold, will have which of the following results?

• A) it will encourage managers to produce safety stock
• B) conversion costs become period costs
• C) income is increased if managers produce more output than is sold
• D) increased inventoriable costs
• E) produce more safety stock, and conversion costs become period costs

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Definitions:

Heteronormativity

A cultural bias favoring heterosexual relationships and identities, often marginalizing those who do not fit into this norm.

Binary Categories

Conceptual divisions based on two mutually exclusive and opposite classifications, such as male/female or true/false, often criticized for oversimplification.

Essentialists

Philosophers or theorists who believe in the intrinsic, fundamental nature of entities.

Reproductive Advantage

The evolutionary benefit that certain individuals or traits have over others, leading to a greater likelihood of survival and reproduction.