Microsoft
MB-320 · Question #75
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…
The correct answer is B. Change the primary formula item to use the planning item type. See the full explanation below for the reasoning.
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
How the community answered
(29 responses)- A10% (3)
- B79% (23)
- C7% (2)
- D3% (1)
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