The amount of raw material purchased in a period may be different than the amount of material used that period because
A)the number of units sold may be different from the number of units produced.
B)finished goods inventory may fluctuate during the period.
C)the raw material inventory may increase/decrease during the period.
D)companies often pay for material in the period after it is purchaseD.

Question

Quizplus · Accepted Answer

Raw material inventory may increase or decrease during the period, meaning that some raw material was purchased but not used or that material was used but more was purchased during the period. This can result in a difference between the amount of raw material purchased and the amount used in a given period. Option A and B are not related to the amount of raw material purchased or used. Option D may explain a time lag in payment for materials, but it does not necessarily relate to the difference between the amounts purchased and used.

The Amount of Raw Material Purchased in a Period May