Direct Materials Inventory Includes Which of the Following

question 4

Multiple Choice

Direct materials inventory includes which of the following?

• A)Products in their original form intended to be sold without changing their basic form
• B)Direct materials in stock and awaiting use in the manufacturing process
• C)Goods partially worked on but not yet fully completed
• D)Goods fully completed by the firm but not yet sold

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Definitions:

IASB

Stands for International Accounting Standards Board, responsible for developing International Financial Reporting Standards (IFRS).

Economic Benefits

The gains received or receivable by an entity as a result of past or future transactions or events.

Asset

A present economic resource controlled by the entity as a result of past events. An economic resource is a right that has the potential to produce economic benefits.

Control

The power to influence or direct the behavior of people or the course of events.