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MB-320 · Question #75

MB-320 Question #75: Real Exam Question with Answer & Explanation

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Question

A company produces various products using Process manufacturing. The manufacturer makes two co-products from a formula and rarely produces the primary formula item. The costs of making the co-products are inflated. The manufacturer must update the costs of producing the co-products and change the formula to not produce the primary formula item. You need to change the primary formula item type. What should you do?

Options

  • AAssociate the costs to produce by-products with the items
  • BChange the primary formula item to use the planning item type
  • CChange the cost of the primary formula item to zero and then recalculate the item cost
  • DChange the production type to Bill of materials and recalculate the item cost

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