Describe the Flow of Materials in a Process Cost Accounting

question 161

Essay

Describe the flow of materials in a process cost accounting system.

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Definitions:

Preincorporation Contracts

Agreements entered into on behalf of a corporation not yet formed, which the corporation may later ratify or reject.

Promoter

A person who incorporates a business, organizes its initial management, and raises its initial capital.

Preincorporation Contract

An agreement made by the incorporators or promoters of a company on behalf of the company before it has been legally formed.

Liable

Legally responsible or obligated to compensate for harm, loss, or damage caused by one's actions or omissions.