Which of the Following Is NOT a Way in Which

question 2

Multiple Choice

Which of the following is NOT a way in which managers use the production cost reports to make decisions for their companies?

• A) evaluating performance
• B) identifying the most profitable products
• C) controlling period costs
• D) preparing the financial statements

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Definitions:

Cost Of Goods Manufactured

The total production cost of goods that were completed during a specific period, including materials, labor, and overhead.

Raw Materials Inventory

Refers to the total cost of all the materials that are used in the production of goods but have not yet been transformed into finished products.

Work-In-Process Inventory

Inventory that includes goods partially completed but not yet ready for sale; found between raw materials and finished goods stages.

Freight Costs

Expenses associated with the transportation of goods from one location to another.