When Should Process Costing Techniques Be Used in Assigning Costs

question 91

Multiple Choice

When should process costing techniques be used in assigning costs to products?

• A) Any time production is only partially completed during the accounting period.
• B) If the product is composed of mass-produced homogeneous products.
• C) If the product is manufactured according to customer specifications.
• D) All of these.

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Definitions:

The Board of Directors

A group of individuals elected by the shareholders of a corporation to oversee and make decisions on behalf of the corporation.

Partnership

An officially authorized business partnership in which two or more persons co-manage the operation and profit-sharing.

Limited Liability Company

In the United States, a company framework where the owners bear no personal responsibility for the firm's financial obligations or liabilities.

General Partnership

A partnership in which the partners divide profits and management responsibility and share unlimited personal liability for the partnership’s debts.