In a Job Order Cost Accounting System, the Effect of the Flow

question 108

Multiple Choice

In a job order cost accounting system, the effect of the flow of direct materials into production will be:

• A) increase in Work-in-Process and decrease in Materials Inventory.
• B) increase in Materials Inventory and decrease in Work-in-Process.
• C) increase in Factory Overhead and decrease in Materials Inventory.
• D) increase in Work-in-Process and decrease in Supplies.

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Definitions:

Incongruent

Lacking harmony, consistency, or compatibility between aspects or elements.

Supply Objectives

Goals aimed at ensuring the efficient and effective procurement, management, and distribution of materials and products.

Corporate Strategy

The overall plan and direction of a company, focusing on achieving long-term business objectives and competitive advantage.

Supply Strategy

The planning and execution involved in securing the necessary resources and materials required to meet an organization's strategic goals.