Which of the Following Manufacturing Cost Elements Occurs in a Process

question 78

Multiple Choice

Which of the following manufacturing cost elements occurs in a process cost system?

• A) Direct materials.
• B) Direct labor.
• C) Manufacturing overhead.
• D) All of these.

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Definitions:

Output

Refers to the total amount of goods or services produced by an individual, company, or economy.

AVC

Average Variable Cost, the total variable costs divided by the quantity of output produced.

AVC

Average Variable Cost refers to the sum of all variable expenses incurred when producing an item, divided by the number of units produced.

ATC

Average Total Cost is determined by dividing the overall cost by the output quantity produced.