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C_TB1300_07 · Question #145

Eric is adding a Delivery for a customer. He is using inventory items and the costing method for these items is Standard. After he adds the Delivery, he notices that a journal entry was not created…

The correct answer is B. No Standard cost was defined for the items. See the full explanation below for the reasoning.

Question

Eric is adding a Delivery for a customer. He is using inventory items and the costing method for these items is Standard. After he adds the Delivery, he notices that a journal entry was not created. What might be the reason?

Options

  • AThe inventory level for those items is below the minimum.
  • BNo Standard cost was defined for the items.
  • CThe appropriate inventory accounts were not defined for the items.
  • DThe original purchase price of the items was lower than the Standard cost.

How the community answered

(30 responses)
  • A
    13% (4)
  • B
    77% (23)
  • C
    3% (1)
  • D
    7% (2)

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Full C_TB1300_07 Practice