Which of the Following Is True Regarding Estimates of Completion

question 103

Multiple Choice

Which of the following is true regarding estimates of completion of units in a process costing system?

• A) estimating the degree of completion with regards to conversion costs is more of a science than an art
• B) estimating the degree of completion with regards to conversion costs is usually easier and more accurate than estimating the degree of completion with regards to direct materials
• C) estimating the degree of completion with regards to direct materials is usually easier and more accurate than estimating the degree of completion with regards to conversion costs
• D) when estimating degree of completion, the degree of completion with regards to conversion costs is usually a portion similar to the degree of completion with regards to direct materials

---

Definitions:

Aggregate

refers to the total amount or sum of individual parts in economics or finance.

Desired Money Holding

The preference of individuals or firms for holding cash or liquid assets based on expected financial needs or uncertainties.

Aggregate Demand

The full extent of demand for all goods and services within an economy, measured against a specified price level across a given temporal span.

Employment Act of 1946

A United States federal law aiming to promote maximum employment, production, and purchasing power through economic stability policies.