Which of the Following Is Not One of the Four

question 35

Multiple Choice

Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system?

• A)Determine over or underapplied overhead.
• B)Determine the physical flow of units.
• C)Compute the equivalent units of production.
• D)Compute the cost per equivalent unit of production.
• E)Assign and reconcile costs.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Unavoidable Costs

Expenses that a company must pay regardless of its level of production or sales activity, also known as fixed costs.

Long Run Level

A period in economics where all inputs or production factors can be varied, and all costs are variable, allowing for full adjustment to changes.

Market Price

The existing cost at which one can buy or sell a service or asset.