Which of the Following Entries Is Used to Record Direct

question 142

Multiple Choice

Which of the following entries is used to record direct materials purchased and used in production during a month in the Assembly department,before transferring the goods to Testing department?

• A) Work in Process-Assembly
• Wages Payable Control
• B) Accounts Payable Control
• Work in Process-Assembly
• C) Work in Process-Assembly
• Accounts Payable Control
• D) Accounts Payable Control
• Cash

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Price Discrimination

The strategy of selling the same product at different prices to different groups of consumers, based on their willingness to pay.

Two-part Tariffs

A pricing strategy that consists of a fixed fee plus a variable usage fee.

Bundling

Practice of selling two or more products as a package.