Test Bank Principles of Cost Accounting 17th Edition Edward J. Vanderbeck A+

Description

1. The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a:

a.

Manufacturer.

b.

Merchandiser.

c.

Service business.

d.

Not-for-profit service agency.

ANSWER:

a

RATIONALE:

The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities is a manufacturer.

POINTS:

1

DIFFICULTY:

Easy

LEARNING OBJECTIVES:

PRIN.EDWA.16.1 - Introduction

ACCREDITING STANDARDS:

AACSB Analytic
ACCT.AICPA.FN.03 - Measurement
BUSPROG.03 - Analytic
IMA-Business Applications

OTHER:

Bloom's: Remembering