A Process Costing System

question 163

Multiple Choice

A process costing system

• A)cannot use standard costs.
• B)restates Work in Process Inventory in terms of completed units.
• C)accumulates costs by job rather than by department.
• D)assigns direct labor and manufacturing overhead costs separately to units of production.

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Definitions:

Amortization

The gradual reduction of a debt over a period of time through regular payments covering interest and principal.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings, distributed among shareholders.

Acquisition Date

The exact date on which the acquirer effectively gains control over the acquiree in a business combination.

Impairment Loss

A charge recorded when the carrying amount of an asset exceeds its recoverable amount.