COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Finished goods are goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.
Detailed explanation-2: -Finished goods are products that have completed the manufacturing process but have yet to be sold to customers.
Detailed explanation-3: -Inventory is a current asset account found on the balance sheet, consisting of all raw materials, work-in-progress, and finished goods that a company has accumulated.
Detailed explanation-4: -The term manufacturing refers to the processing of raw materials or parts into finished goods through the use of tools, human labor, machinery, and chemical processing. Manufacturing allows businesses to sell finished products at a higher cost than the value of the raw materials used.