What Is the Correct Order in Which the Flow of Costs

question 21

Multiple Choice

What is the correct order in which the flow of costs in a manufacturing organisation occurs?
I. Transfer finished goods to stock of finished goods
II. Purchase stocks of raw materials
III. Transfer finished goods to cost of sales
IV. Charge raw materials, direct labour and factory overhead to work in process

• A) I, III, IV, II
• B) II, IV, I, III
• C) II, IV, III, I
• D) II, I, III, IV

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Definitions:

Television Sets

Are electronic devices designed for the reception and display of broadcast or recorded visual content.

Arizona

A state located in the southwestern region of the United States, known for its desert climate, the Grand Canyon, and rich Native American history.

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and distributed to retailers or customers.

Washington

A state in the Pacific Northwest region of the United States, known for its large forest areas, the Cascade Range, and being the home of the city of Seattle.