A Job Has 5 Days of Processing Time Left to Do

question 120

Multiple Choice

A job has 5 days of processing time left to do before completion, and today is the 10^th day of the month. If the job is due on the 14^th day of the month, what is its critical ratio?

• A) 5
• B) 2
• C) 0.8
• D) 0.5
• E) 0.1

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Definitions:

Process Costing

A costing methodology used in manufacturing where costs are assigned to batches of products instead of individual units, useful for homogeneous products.

Weighted-Average Method

A cost flow assumption used in inventory costing that averages the cost of all similar items available for sale during the period.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the costs incurred to convert raw materials into finished goods.

Process Costing

A costing method that assigns manufacturing costs to units of product, used when nearly identical products are mass-produced.