Costs Are Transferred from the Balance Sheet to the Income

question 123

Multiple Choice

Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________.

• A) finished goods are sold
• B) goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account
• C) direct materials, direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account
• D) the total of Cost of Goods Manufactured is determined

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Definitions:

Internal Consistency Validity

A measure of whether items on a test are all assessing the same construct.

Interrater

An assessment of the degree to which different raters or observers give consistent estimates or judgments of the same phenomenon.

Parallel Forms

A method of reliability testing in which different versions of a test are administered to the same individuals at different times to measure consistency between the forms.

Test-Retest

A reliability measure to assess the consistency of a test over time by administering the same test to the same subjects at two different points in time.