Which of the Following Statements Concerning a Process Cost Accounting

question 91

Multiple Choice

Which of the following statements concerning a process cost accounting system is false?

• A) The units in beginning inventory plus the units transferred out during the month should equal the units in the ending inventory plus the units transferred in during the month.
• B) If material is used evenly throughout a process, the number of equivalent material units will equal the number of equivalent units for the conversion (processing) costs.
• C) Actual costing may be used in a process costing system to assign indirect overhead costs to departments.
• D) The units in beginning inventory plus the units transferred in during the month should equal the units in the ending inventory plus the units transferred out during the month.

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Definitions:

Process Distribution

Represents how the values of a process or system's output are spread or dispersed over a range.

R Charts

Control charts used to monitor the range within samples in order to assess the variability of a process.

Process Capability Index

A statistical measure that quantitatively determines a process's ability to produce output within specified limits.

Specification Limits

Predefined bounds within which a product, service, or outcome must fall to be considered acceptable quality.