Quince,Inc

question 33

Multiple Choice

Quince,Inc.uses a process costing system.It prepares a production cost report for each processing department.How will the managers of Quince use these production cost reports to prepare the balance sheet at the end of an accounting period?

• A) to determine the amount of current liabilities of the period
• B) to determine the balance of inventory accounts
• C) to determine the cost of goods sold during the period
• D) to determine the amount of revenues generated during the period

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Definitions:

Opportunity Cost

Surrendering the chance for gains from other choices by opting for one path.

Machinery

Equipment, especially of a mechanical nature, used in the production process of goods.

Petroleum

A liquid that occurs naturally under the surface of the Earth, which can be processed into fuel and a range of chemical products.

Labor Productivity

A measure of economic performance calculated by dividing total output by the total number of hours worked.