All of the Following Are True of the Work-In-Process Control

question 345

Multiple Choice

All of the following are true of the Work-in-Process Control account EXCEPT that:

• A)it is an asset account.
• B)the balance equals the sum of amounts from all in-process individual job-cost records.
• C)it tracks job costs from beginning through completion.
• D)it tracks all direct material purchases.

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Definitions:

Product F1

A specific product identified as F1, details of which would depend on the context in which it is referenced.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Activity-Based Costing

Activity-based costing is an accounting method that identifies and assigns costs to specific activities, facilitating more precise economic analysis of various business processes.

Activity Rates

Rates used in activity-based costing to assign costs to products or services based on the amount of an activity they consume.