To Recognize the Disposal Value of Normal Spoilage, ________

question 153

Multiple Choice

To recognize the disposal value of normal spoilage, ________.

• A) Manufacturing Overhead Control account is debited with spoiled goods at current net disposal value.
• B) Materials Control account is debited with spoiled goods at current net disposal value.
• C) Work-in-Process Control account is debited with spoiled goods at current net disposal value.
• D) Manufacturing Overhead Control account is credited with spoiled goods at current net disposal value.

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Definitions:

Days' Sales In Inventory

A financial metric indicating the average time in days that a company takes to turn its inventory into sales.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets.

Return On Stockholders' Equity

A measure of the profitability of a corporation in relation to stockholders' equity, indicating how efficiently a company uses its equity to generate profits.

Return On Common Stockholders' Equity

A financial ratio that measures the profitability of a company from the perspective of common stockholders, calculating how much net income is generated per dollar of common equity.