Under the Weighted-Average Process Cost Method, We Ignore

question 96

Multiple Choice

Under the weighted-average process cost method, we ignore

• A)when costs are actually incurred.
• B)whether costs are material costs or conversion costs.
• C)equivalent units of production.
• D)factory labour costs.

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Definitions:

Return on Sales Ratio

A financial ratio that measures the efficiency of a company in generating operating profit from its revenue.

Net Sales

The revenue a company earns from sales after subtracting the costs of returns, allowances for any damaged or missing items, and discounts.

Net Income Before Taxes

The total earnings of a company before taxes have been deducted.

Gross Profit

The difference between revenues and the cost of goods sold before deducting overheads, taxes, interest, and depreciation.