Which of the Following Combinations Is Correct

question 82

Multiple Choice

Which of the following combinations is correct?

• A) Existence relates to whether the amounts in accounts are understated.
• B) Occurrence relates to whether balances exist.
• C) Existence relates to whether amounts included exist.
• D) Occurrence relates to whether the amounts in accounts occurred in the proper year.

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Definitions:

Conversion Costs

Costs specifically associated with converting raw materials into finished goods, which include labor and overhead.

Whole Units

The number of units in production during a period, whether completed or not.

FIFO Method

An inventory valuation method that assumes the first items placed in inventory are the first sold, standing for "First-In, First-Out."

Conversion Costs

The costs specifically associated with converting raw materials into finished goods, typically including direct labor and manufacturing overhead.