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If Everything in the Manufacturing Account Remains Constant, but the Inventory

Question 3

Multiple Choice

If everything in the manufacturing account remains constant, but the inventory of raw materials increases during the period, then:


A) Prime cost will decrease and the factory cost of goods completed will decrease
B) Prime cost will increase and the factory cost of goods completed will increase
C) Prime cost will increase and the factory cost of goods completed will decrease
D) Prime cost will decrease and the factory cost of goods completed will increase

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