Under the Just-In-Time Costing System,a Credit Purchase of Raw Materials

question 69

Multiple Choice

Under the just-in-time costing system,a credit purchase of raw materials is recorded by ________.

• A)debiting the Raw Materials Inventory account
• B)crediting the Conversion Costs account
• C)debiting the Raw and In-Process Inventory account
• D)crediting the Cash account

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Definitions:

Work Sampling

A statistical technique used for analyzing work efficiency and performance by taking random samples of work activities over time.

Idle Time

Periods when resources are available but not in use, often due to delays, inefficiencies, or lack of demand, leading to wasted capacity.

Observations

The process of monitoring, recording, and analyzing data or events for the purpose of drawing conclusions or making decisions.

Predetermined Time Standard

A method used in industrial engineering and time management to estimate the time required for completing a task based on standard time units.