Goals Achievement: Chapter Twenty
To a great extent process costing systems operate in much the same manner as job costing systems.
A process costing system is best suited to a manufacturing operation which gives rise to:
In a process costing system, costs are accumulated on:
An equivalent unit is a physical unit stated in terms of:
Potentially, a company could have a huge number of equivalent units of production without completing any finished goods.
Direct materials, direct labor, and factory overhead are generally introduced at the same time throughout the production process.
In preparing a cost of production report, which step precedes the other?
In preparing a cost of production report, the analysis of physical units reveals the units to account for. This amount is identical to the equivalent units of materials and conversion costs.
On a cost of production report, the total cost accounted for in the cost assignment section should equal the beginning work in process plus the:
With the weighted-average method of process costing, the units finished during the period are assumed to be both started and completed during the period.
With a weighted-average method of process costing, the dollar value of beginning work in process is assumed to be related to:
The ending work in process equivalent units are assumed to be the same for materials and conversion if a weighted-average process costing method is used.
Within the ledger system for a company using process costing techniques, a credit to the Work in Process account for the final processing department would likely indicate:
Which of the following will likely more likely result in cost objects absorbing a portion of the non-factory costs?
Generally accepted accounting principles may preclude activity-based costing results because inventory can fail to absorb:
Which of the following techniques will likely result in more cost drivers being used to cost a single product?
With activity-based costing, activities are considered to occur at various levels (e.g., unit-level, batch-level, etc.) and the levels are then combined prior to allocating costs.
Activity-based costing results in all costs being assigned to a cost object.