In a Job-Order Costing System, the Use of Indirect Materials

question 26

Multiple Choice

In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to:

• A)Work in Process inventory.
• B)Manufacturing Overhead.
• C)Raw Materials inventory.
• D)Finished Goods inventory.

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Definitions:

Cash Equivalents

Short-term, highly liquid investments that are easily convertible into a known amount of cash.

Cash Burn

The rate at which a company spends its cash reserves before generating positive cash flow from operations.

Monthly Cash Expenses

The total amount of cash spent by an individual or organization on various expenses within a month.

Internal Control

Procedures and processes implemented by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency.