Costing - Study Mode
[#241] First step in process costing system is to
Correct Answer
(A) summarize flow of output
Explanation
Solution: First step in process costing system is to summarize flow of output. Flow is more inline with the concept of a function, that is, a Flow has both input and output parameters.
[#242] Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called
Correct Answer
(B) transferred-in costs
Explanation
Solution: Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called transferred-in costs. Transferred-in costs are costs accumulated during the upstream production processes within a company. Transferred-in costs are the costs accumulated by the product at any given point in production.
[#243] In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as
Correct Answer
(D) First-in, first-out method
Explanation
Solution: In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as First-in, first-out method.
[#244] Fifth step in process costing system is to
Correct Answer
(D) assign total cost to completed units
Explanation
Solution: Fifth step in process costing system is to assign total cost to completed units. Total cost is an economic measure that sums all expenses paid to produce a product, purchase an investment, or acquire a piece of equipment including not only the initial cash outlay but also the opportunity cost of their choices.
[#245] Forth step in process costing system is to
Correct Answer
(B) compute cost for each equivalent unit
Explanation
Solution: Forth step in process costing system is to compute cost for each equivalent unit. Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.