A Technological Advance May Come in Either the Form of a Product

question 15

True/False

A technological advance may come in either the form of a product or a process innovation.

---

Definitions:

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, treating them as if they were a certain number of fully completed units.

Conversion Costs

The combined cost of direct labor and manufacturing overheads incurred to convert raw materials into finished goods.

Direct Materials

Raw materials that are directly involved in the manufacturing of a product and can be directly associated with the product.

Process Cost Summary

A document that aggregates and summarizes the total costs associated with a specific stage of production in process costing.