Learning Objective 03-P4: Record the transfer of goods across departments, to Finished Goods Inventory, and to Cost of Goods Sold. A trend where inventory levels can be minimal and raw materials are not ordered or received until needed is called

 Learning Objective 03-P4: Record the transfer of goods across departments, to Finished Goods Inventory, and to Cost of Goods Sold.
As units are passed through processes, their accumulated costs are transferred across separate Work in Process Inventory accounts for each process. As units complete the final process and are eventually sold, their accumulated cost is transferred to Finished Goods Inventory and finally to Cost of Goods Sold.

A trend where inventory levels can be minimal and raw materials are not ordered or received until needed is called:

multiple choice

    Continuous Processing
    Services
    Customer Orientation
    Just-in-time Production Correct

Explanation

Knowledge Check 01

With a just-in-time production system, raw materials are not ordered or received until needed and inventory levels can be minimal.