All Manufacturing Costs That Are Assigned to Completed (But Unsold)products

question 182

Multiple Choice

All manufacturing costs that are assigned to completed (but unsold) products should be classified as

• A)materials inventory costs.
• B)cost of goods sold.
• C)work in process inventory costs.
• D)finished goods inventory costs.

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Definitions:

ROA (Return on Assets)

A financial ratio indicating how profitable a company is relative to its total assets, measuring efficiency in managing investments to generate earnings.

Net Income

The total earnings or profit of a company after all expenses and taxes have been deducted from total revenue.

Sales

The exchange of a product or service for money, typically seen as a unit of measurement for business performance.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.