Completion Statements

Fill in the blank(s) to complete each statement.

1. Which six categories of costs pertaining to inventory are distinguished for management purposes?

_______________________________________

_______________________________________

______________________________________.

2. Which two of the cost categories in the preceding answer are considered in the EOQ model? _______________________________________ and ___________________________________

3. What do each of the letters in the EOQ model stand for?

D =

P =

C =

4. In purchasing materials or goods, ordering costs are equivalent to ______________ costs for a production run.

5. A system of production that manufacturers each component in a production line as soon as, and only when, needed by the next step in the production line is called ______________________ ______________________________________.

6. Traditional normal and standard costing record the journal entries in the same order as actual purchases and progress in production occurs, which is called __________________________ ________________.

7. _________________________________ omits recording some of the journal entries relating to the stages from purchase of direct materials to the sale of finished goods; it then uses normal or standard costs to work backward to assign manufacturing costs to units produced and/or sold.

8. A stage in the cycle, from purchase of direct materials to sale of finished goods, at which journal entries are recorded in the accounting system is called a ________________________________.