In cost accounting, the types of inventory do not include ______________?
Correct answer: D. indirect material inventory
- A. direct materials inventory
- B. work in process inventory
- C. finished goods inventory
- D. indirect material inventory
Explanation
Manufacturing cost accounting normally identifies direct materials, work in process, and finished goods as the three main inventory categories. Indirect materials are treated as manufacturing overhead rather than a separate main inventory type in this classification.
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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.
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