A Summary of the Materials Requisitions Completed During a Period

question 64

Multiple Choice

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

• A)work in process and cost of goods sold.
• B)work in process and factory overhead.
• C)finished goods and cost of goods sold.
• D)work in process and finished goods.

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Definitions:

Marginal Rate

A rate that indicates the change in a variable (such as cost, revenue, or tax) as its underlying factor changes incrementally.

Substitution

The action of replacing one good or service with another based on changes in relative prices, incomes, or preferences.

Indifference Curve

A graph showing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Utility

In economics, a measure of satisfaction, usefulness or value that an individual gains from consuming goods and services.