When Using Weighted Average Process Costing

question 25

Multiple Choice

When using weighted average process costing:

• A) The costs attached to beginning work in process are kept separate from all other costs
• B) The current period costs will be added to the beginning work in process costs
• C) Units in the ending inventory are not considered in making equivalent unit computations
• D) Completed units are transferred out in two separate blocks

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Definitions:

Fixed Price

A pricing strategy where the cost of a product or service is set and not subject to change based on fluctuations in the market or demand.

Bonus Pay

Additional compensation given to employees as a reward for achieving specific goals, performance levels, or for exceptional work beyond their regular pay.

Merit Pay

A system of compensation where employees are awarded pay increases or bonuses based on their performance or achievements.

Profit-Sharing

A compensation strategy where employees receive a share of the company's profits, typically as a supplement to their regular income.