When a Manufacturing Company Uses Standard Costing System the Work-In-Process

question 159

True/False

When a manufacturing company uses standard costing system the Work-in-Process account records all transactions at standard cost amounts.

---

Definitions:

Annual Reports

Comprehensive reports on a company's activities throughout the preceding year, intended to give shareholders and other interested parties information about the company's performance and financial standing.

Perpetual Inventory System

A method of inventory management where adjustments to inventory accounts are made continuously as transactions occur.

Cost Of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold by a company.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, becoming the next period's beginning inventory.