In a Process Cost System,how Is the Unit Cost Affected

question 35

Multiple Choice

In a process cost system,how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units?

• A)It causes an increase in the preceding department's unit cost that necessitates an adjustment of the transferred-in unit cost.
• B)It causes a decrease in the preceding department's unit cost that necessitates an adjustment of the transferred-in unit cost.
• C)It causes an increase in the preceding department's unit cost but does not necessitate an adjustment of the transferred-in unit cost.
• D)It causes a decrease in the preceding department's unit cost but does not necessitate an adjustment of the transferred-in unit cost.

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Definitions:

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a persistent pattern of behavior that violates the rights of others or societal norms.

Oppositional Defiant Disorder

A disorder marked by an ongoing pattern of disobedient, hostile, and defiant behavior toward figures of authority, distinct in its consistency and severity.

Rural Areas

Rural areas are regions located outside towns and cities, often characterized by lower population density, smaller settlements, and predominantly agricultural or undeveloped land.

Antisocial Personality Disorder

A mental disorder in which a person consistently shows no regard for right and wrong and ignores the rights and feelings of others.