In the Mechanics of Process Costing, Why Is an Allocation

question 5

Multiple Choice

In the mechanics of process costing, why is an allocation that computes costs based on the number of physical units not accurate?

• A)A number based on physical units does not include fixed costs.
• B)A number based on physical units does not include overhead costs.
• C)It attaches too much variable costs to each unit.
• D)It attaches the same value to a unit whether the unit is in process or is complete.
• E)None of the above.

---

Definitions:

Freedpeople

Former slaves who were emancipated during and after the American Civil War.

Reconstruction Era

The period from 1865 to 1877 following the Civil War, focused on rebuilding the United States and integrating formerly enslaved people into society.

Free Labor System

An economic system where workers are not forced or coerced into labor but are paid for their work and can choose their employment.

White Supremacist Organizations

Groups that advocate for the superiority of white people and often seek to promote racist ideologies.