Which of the Following Statements Accurately Describes Manufacturing Cost Flows

question 36

Multiple Choice

Which of the following statements accurately describes manufacturing cost flows in a just-in-time (JIT) environment?

• A) Direct labor and overhead are maintained in a work in process account for long periods of time.
• B) There is little need to maintain a cost of goods sold account.
• C) There is little need to maintain raw materials, work in process, or finished goods accounts.
• D) Manufacturing costs are maintained in the finished goods account for long periods of time.