An inventory which consists of stock waiting to be used In the process of manufacturing is known as ___________?
Correct answer: C. direct materials inventory
- A. finished goods inventory
- B. indirect material inventory
- C. direct materials inventory
- D. work in process inventory
Explanation
Direct materials inventory consists of raw materials held for use in manufacturing and traceable to the finished product. Work-in-process inventory has already entered production but is not yet complete.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
The companies in the industry that purchase the finished goods, and further sell the products into the market are classified as ______________?
Companies that are part of an industry of 'service providers' are ____________?
If the total manufacturing cost is $60000 and the total units manufactured is 3000 units, then the per unit cost will be ____________?
The cost computed by dividing total manufacturing cost and total manufactured units is known as ____________?
In cost accounting, the types of inventory do not include ______________?
The machine budgeted time standards are set too tight, is the possible cause for ____________?