Direct Material Purchases Equal

question 130

Multiple Choice

Direct material purchases equal

• A)usage plus production needs.
• B)production needs plus target ending inventories.
• C)beginning inventories plus production needs.
• D)usage plus target ending inventories less beginning inventories.
• E)the number of units to be produced times the amount of direct material in each unit.

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Definitions:

Cash

A company's liquid assets that are available for immediate use for transactions, including currency and demand deposits.

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.

Accounts Payable

Refers to the amount a company owes to suppliers or vendors for goods and services received but not yet paid for.