For product costs associated with a particular product to be reported on the income statement:

Multiple Choice

• The product must be sold.
• The company must expect to sell the product during the next twelve months.
• The product may be in any of the manufacturer's inventory accounts.
• The product must still be in Work in Process Inventory.
• The product must be transferred to Finished Goods Inventory.

A management concept based on an understanding of the changing wants and needs of customers, and which leads to flexible product designs and production processes, is called:

Multiple Choice

• Continuous improvement.
• Theory of constraints.
• Total quality management.
• Customer orientation.
• Just-in-time.