The Correct Order for the Steps in Preparing a Process

question 86

Multiple Choice

The correct order for the steps in preparing a process costing report are: I Summarise total costs to account for.
II Calculate the cost per equivalent unit
III Account for cost of units completed and cost of ending WIP
IV Summarise total physical and equivalent units

• A) I, II, III IV
• B) IV, III, II, I
• C) IV, I, II, III
• D) I, IV, II, III

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Definitions:

Investment

The allocation of resources, usually money, in something to earn income or profit.

Associate

A company in which another company owns a significant stake, typically between 20% and 50%, allowing some degree of influence without full control.

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, but not control those policies.

Share Ownership

Denotes holding equity in a company, representing a claim on part of the company's assets and earnings.