13) Which of the following statements is true of conversion costs?
ADiff: 2Objective: 3AACSB: Analytical thinking14) Underestimating the degree of completion of ending work in process leads to increase in operating income.
Diff: 2Objective: 3AACSB: Analytical thinking15) The last step in a process-costing system is to compute cost per equivalent unit.
Diff: 2Objective: 3AACSB: Analytical thinking16) The equivalent unit concept is a means by which a process costing system can comparepartially completed work done in each of the various process categories to obtain a total measure of work done.
Diff: 2Objective: 3AACSB: Analytical thinking17) The accuracy of the completion estimate of conversion costs depends on the care, skill, and experience of the estimator and also the nature of the conversion process.
Diff: 2Objective: 3AACSB: Analytical thinking18) In a process-costing system, there is always a separate Work-in-Process account for each different process.
Diff: 2Objective: 3AACSB: Analytical thinking19) A production cost worksheet is used to summarize total costs to account for, compute cost per equivalent unit, and assign total costs to units completed and to units in ending work-in-process.