Which of the Following Is Not a Step in the Production-Distribution

question 3

Multiple Choice

Which of the following is not a step in the production-distribution chain?

• A) A consumer wears jewelry to work.
• B) A consumer enters a jewelry shop and buys a ring.
• C) A goldsmith crafts 10 rings.
• D) A wholesaler buys a large number of rings.
• E) The jewelry shop owner buys a ring to put in the store.

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Definitions:

Overapplied

This term relates to a situation where the allocated costs in accounting exceed the actual indirect costs.

Underapplied

A situation where the allocated overhead cost is less than the actual overhead cost incurred.

Work in Process Account

An account used in accounting to track the costs associated with the production of goods that are not yet complete.

Ending Balance

The amount of money in an account at the end of a period, after all additions and subtractions have been accounted for.