What Situation Is Created If There Are No Units in Process

question 83

Multiple Choice

What situation is created if there are no units in process at the beginning of the period?

• A)The company must be using a job-order cost system.
• B)The units to be accounted for will equal the units transferred out plus the units in process at the end of the period.
• C)The units started into production will equal the number of units transferred out.
• D)Equivalent units of production for materials and conversion costs will be the same.

---

Definitions:

Research and Development

Activities undertaken by a business to develop new products or improve existing ones, often involving innovation and technological advancement.

Capitalized

The process of recording an expenditure as an asset, rather than an expense, allowing a company to spread out the cost over time.

Natural Resource Depletion

The consumption of natural resources faster than they can be replenished, specifically accounted for in the valuation and depreciation of such resources by companies.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, culminating in its net income or loss for that period.