The Purpose of a Materials Requisition Form Is To

question 32

Multiple Choice

The purpose of a materials requisition form is to:

• A) track work-in process inventory so the appropriate percentage of completion proportion can be computed.
• B) authorize the release of raw materials into work-in-process.
• C) trigger the accounting entry to reduce raw materials inventory records and increase finished goods.
• D) update the general ledger for the movement of materials into finished goods.

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Definitions:

Workers

Individuals engaged in any form of economic activity to earn a wage or salary, including both skilled and unskilled labor.

Total Cost

The complete cost of production that includes both variable and fixed costs.

Economics

The social science that studies how individuals, governments, firms and nations make choices on allocating scarce resources to satisfy their unlimited wants.

Farming

The practice of cultivating crops and raising livestock for food, fiber, biofuel, medicinal plants, and other products used to sustain and enhance human life.