Which of the Following Correctly Computes Cost of Goods Manufactured

question 121

Multiple Choice

Which of the following correctly computes cost of goods manufactured?

• A) Beginning work in process + Direct materials used + Direct labor + Overhead − Ending work in process.
• B) Beginning work in process + Cost of goods sold − Ending finished goods
• C) Beginning work in process + Direct materials used + Direct labor + Overhead
• D) None of these answers are correct.

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Definitions:

Business Units

Separate operational entities within a corporation, each having distinct tasks and objectives, contributing to the overall strategy of the company.

Shared Service Units

Divisions within a company that provide services to multiple departments, improving efficiency and reducing costs.

Cost Centre

A segment of an organization where costs can be accumulated, but which does not directly generate revenue.

Standardised Services

Services that are provided in a consistent manner every time, ensuring uniform quality and experience across all service points.