ch11 - ch11 Student: _ 1. Firms should use a process...

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ch11 Student: ___________________________________________________________________________ 1. Firms should use a process costing system when they produce products that: A. Are homogeneous. B. Pass through a series of similar processes. C. Pass through a series of similar departments. D. Answers A, B and C are all correct. 2. In process costing, unit product cost is calculated by dividing process cost in each department by the equivalent units produced: A. Less beginning inventory. B. Plus beginning inventory. C. In the prior period. D. In the following period. E. During the period. 3. In calculating unit cost in a process costing system, "conversion cost" is defined as the sum of: A. Direct and indirect material costs. B. Direct and indirect labor costs. C. Direct labor and factory overhead costs. D. Indirect labor and factory overhead costs. E. Indirect material and factory overhead costs. 4. The first step in determining process costs is: A. Assigning cost to completed and uncompleted production. B. Computing the cost per equivalent unit. C. Calculating equivalent units of production. D. Analyzing physical flow of production units. E. Determining total cost for each manufacturing element. 5. The fifth and final step in determining process costs is: A. Analyzing physical flow of production units. B. Calculating equivalent units of production. C. Determining total cost for each manufacturing element. D. Computing the cost per equivalent unit. E. Assigning cost to completed and uncompleted production. 6. The weighted-average method of process costing makes no distinction between the cost incurred prior to the current period and the cost incurred in: A. A future period. B. The current period. C. Either a future period or the current period. D. Both a future period and the current period. E. The operational process. 1
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7. The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed: A. Beginning direct materials inventory. B. Ending direct materials inventory. C. Beginning work-in-process inventory. D. Ending work-in-process inventory. E. Beginning finished goods inventory. 8. The advantage of the weighted-average method is its: A. Complexity. B. Computer-friendly nature. C. Appropriateness regardless of inventory level changes. D. Effectiveness in a cost leadership strategy. E. Simplicity. 9. Which of the statements below is correct? A. Normal spoilage is spoilage that occurs under efficient operating conditions. B. Normal spoilage is uncontrollable in the short term and considered a part of product cost. C. Abnormal spoilage is spoilage in excess of that expected under efficient operating conditions. D. Abnormal spoilage is charged as a loss to operations in the period detected.
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This note was uploaded on 06/03/2008 for the course ACCT 304 taught by Professor Any during the Spring '08 term at Rutgers.

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ch11 - ch11 Student: _ 1. Firms should use a process...

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