What is the basic idea of incoming inspection? Why does a producer perform it?
What will be an ideal response?
The idea of incoming inspection is to ensure that only good (or acceptable) components enter the production stream. If production uses faulty components, the output will be faulty and the effort wasted. Using only quality components brings the producer one step closer to creating quality output. The producer performs it at its own cost, because the up-front effort is less expensive than fixing defective finished goods at the end of the line or once they have reached consumers' hands.
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____ use the actual cost of a previous, similar project as the basis for estimating the cost of the current project.
a. Actual estimates b. Parametric estimates c. Bottom-up estimates d. Analogous estimates
Indicate the nature of the account or accounts to be debited when recording each transaction Jim Dolan and Matt Stine, maintenance repairmen, spent five days in unloading and setting up a new $30,000 precision machine in the plant. Their wages earned in this five-day period totaled $800.
a. Asset(s) only. b. Accumulated amortization, depletion, or depreciation only. c. Expense only. d. Asset(s) and expense