70.2K

Verified Solution

Link Copied!

If you are going to Refine your cost system you must

A identify the activities involved in a process and understanding how those activities consume resources

B Seek an easier and more cost effective way to calculate average costs

C classify as many costs as indirect costs as is feasible

D create as many cost pools as possible to capture all costs

If using the weighted-average method of process costing and you are calculating the cost per equivalent unit (step 4), you would include all the costs ________.

A that have entered work in process from the units started or transferred in during the current accounting period

B that have entered work in process during the current accounting period from the units started or transferred in minus the costs associated with ending inventory

C entering work in process from the units in beginning inventory plus the costs for the work completed during the current accounting period

D that have entered work in process during the current accounting period from the units started or transferred in plus the costs associated with ending inventory

Companies that use a process costing system are at a disadvantage over those that use job order costing because

A t requires the estimation of percentage of completion of work-in-process for calculating equivalent units.

B it is difficult to determine cost of goods sold when partial shipments are made before completion.

C time spent on tracking labor and materials is wasted.

D it is difficult to ensure that material and labor are accurately charged to each specific job.

Answer & Explanation Solved by verified expert

See Answer