In a Job Order Cost System Using Predetermined Manufacturing Overhead

question 67

Multiple Choice

In a job order cost system using predetermined manufacturing overhead rates, indirect materials issued into production usually are recorded as an increase in

• A)Work in Process Stock.
• B)Finished Goods Stock.
• C)Raw Materials Stock.
• D)Manufacturing OverheaD.

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Definitions:

Turnover

Turnover refers to the rate at which employees leave a workforce and are replaced, or the total volume of sales made by a company during a particular period.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a percentage of the return on the investment relative to its cost.

Margin

The difference between the selling price of a product and its cost of production.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding income from investments or taxes.