All of the Following Could Be Included in the Cost

question 19

Multiple Choice

All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

• A)The costs of materials,labor and overhead identifiable with that department.
• B)Logistics (product fulfilment)costs.
• C)The costs of service departments that have been allocated to production departments.
• D)The costs of prior production departments.

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Definitions:

Inventory

The totality of goods or materials a company holds for the purpose of selling in the market or using in production.

Fixed Assets

Assets that are of a permanent or long-term nature, typically used in the operations of a business, such as buildings, machinery, and equipment.

Full Capacity

The maximum level of output that a company can sustain within a given period, utilizing all available resources efficiently.

Fixed Assets

Long-term tangible assets, such as buildings and machinery, used in the operations of a business that are not expected to be converted into cash within a year.