Which of the following statements best defines a trigger point in a sequential-tracking costing system?
A) the inventory level at which a new purchase order is generated
B) the point at which the sum of annual relevant stockout and ordering costs is minimal
C) the production level at which the costing system becomes incapable of tracking the production costs
D) a stage in the production cycle at which journal entries are made in the accounting system

Question

Quizplus · Accepted Answer

A trigger point in a sequential-tracking costing system refers to a specific stage in the production cycle where journal entries are recorded in the accounting system to reflect the costs incurred.

Which of the Following Statements Best Defines a Trigger Point