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:

Post Hoc

Short for the logical fallacy "post hoc ergo propter hoc," meaning "after this, therefore because of this," it implies a mistaken belief that because one thing follows another, it was caused by the other.

Ergo Propter Hoc

A logical fallacy meaning "therefore because of this," implying a cause-and-effect relationship where none exists based solely on sequence of events.

Slope

The measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Equity

Refers to the ownership interest in a corporation in the form of common or preferred stock; it represents the owners' share in the company's assets.