Of the Following Process Costing Steps, Which Must Be Done

question 113

Multiple Choice

Of the following process costing steps, which must be done last?

• A) Compute the equivalent units of production.
• B) Compute the costs per equivalent unit of production.
• C) Measure the physical flow of resources.
• D) Identify the product costs to account for.

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Definitions:

Pension Liability

The present value of the future retirement benefits that an employee has earned up to date, representing an obligation of the employer to provide pension benefits to its employees.

Projected Benefit Obligation

Projected Benefit Obligation (PBO) is an actuarial valuation that estimates the total amount a company expects to pay for employee pension benefits in the future.

Accumulated Benefit Obligation

The actuarial present value of all benefits attributed by the pension benefit formula to employee service rendered prior to that date, whether or not the benefits are vested.

Plan Assets

Assets that are held by a retirement plan, which can include stocks, bonds, and cash, intended to fund the future benefit payments to participants.