ABC Produces Ping-Pong Balls Using a Three-Step Sequential Process That

question 125

Multiple Choice

ABC produces ping-pong balls using a three-step sequential process that includes molding, colouring and finishing. When the balls and associated costs are transferred from the molding process to the colouring process, which account is debited?

• A) WIP inventory-colouring
• B) WIP inventory-molding
• C) Raw materials inventory
• D) WIP inventory-finishing

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Definitions:

Representativeness Heuristic

A cognitive bias in decision-making where the likelihood of an event is estimated based on how similar it is to the typical case.

Narrow Framing

Making decisions without considering all implications or by overly focusing on a narrow set of factors.

Affect Heuristic

A mental shortcut in decision-making influenced by emotions, where people rely on feelings rather than detailed analysis.