Which One of the Following Is True of the Manufacturing

question 71

Multiple Choice

Which one of the following is true of the manufacturing operations of a company using process costing?

• A)A product typically must pass through two or more finished goods departments.
• B)Manufacturing overhead and direct labor costs are referred to as conversion costs.
• C)Transferred-in costs occur only in departments that have no direct labor costs.
• D)Costs transferred in must equal total costs transferred out of each work in process department.

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