The Bill of Lading

question 44

Multiple Choice

The bill of lading:

• A)Signifies release of goods for shipment to customers
• B)Is sent to the customer with the purchase invoice
• C)Is used to control inventory

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Definitions:

Work in Process

Inventory that includes all materials, labor, and overhead costs for products that are in the process of being manufactured but are not yet completed.

Finished Goods

The final products that are completed and ready for sale to customers.

Job-Order Costing

An accounting methodology used to assign manufacturing costs to individual units or batches of production, based on the jobs performed.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to products.