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Select the Appropriate Classification of the Output Generated by Each

question 15

Multiple Choice

Select the appropriate classification of the output generated by each of the following industries.Each classification may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-A&W Restaurant

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Definitions:

Production

The process of creating goods or services using labor, machinery, and materials to meet consumer demand.

Work In Process

Represents the inventory that has begun the production process but is not yet completed in a manufacturing company.

Equivalent Units

A concept used in cost accounting to express the amount of materials or labor that has been transformed into completed units during a period.

Direct Materials

The raw materials that are directly incorporated into a finished product, which are easily traceable and assignable to the manufacturing cost.

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