Asked by Rabin Karki karki on Mar 10, 2024

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A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Work in Process Inventory.

Work in Process Inventory

Items currently in production but not yet completed; part of a manufacturing company's inventory.

Finished Goods Inventory

The total value of all the finished products that are ready for sale but have not yet been sold by the company.

  • Acknowledge the inventory accounts integral to cost accounting procedures.
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CT
Chartavia TaylorMar 10, 2024
Final Answer :
False
Explanation :
A company that uses a cost accounting system typically has three inventory accounts: raw materials inventory, work in process inventory, and finished goods inventory.