__________ Ensures That an Inventory Is Only Big Enough to Meet

question 55

Multiple Choice

__________ ensures that an inventory is only big enough to meet immediate needs.

• A) Financial planning
• B) Management control
• C) Inventory control
• D) Direct control

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Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressed in terms of the amount of finished goods.

Transferred In Costs

Expenses associated with products or components that are moved from one process, department, or location to another within a manufacturing operation.

FIFO Costing

An inventory valuation method that assumes the first items purchased or produced are the first ones sold, affecting the cost of goods sold and ending inventory.

Opening WIP Inventory

The value of unfinished goods that a company has at the beginning of an accounting period.