Which Accounts Are Affected When a Job Is Completed and Remains

question 160

Multiple Choice

Which accounts are affected when a job is completed and remains in inventory?

• A) Raw Materials Inventory and Cost of Goods Sold
• B) Finished Goods Inventory and Cost of Goods Sold
• C) Raw Materials Inventory and Work-in-Process Inventory
• D) Work-in-Process Inventory and Finished Goods Inventory

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Definitions:

Automated Factory

A production facility that relies heavily on automated processes and machinery to manufacture goods with minimal human intervention.

Fixed Expenses

Costs that do not vary with the level of production or sales, such as rent, insurance, and salaries.

Variable Expenses

Expenses that change in proportion to the activity of a business, such as sales commissions that rise with increased sales or materials costs that rise with increased production.

Discontinue Product

The decision to stop manufacturing, selling, or supporting a product based on criteria such as sales performance, profitability, or strategic alignment.