Place the Following Process Costing Steps in the Correct Order

question 36

Multiple Choice

Place the following Process costing steps in the correct order: 1 - Calculate equivalent units
2 - Determine the total costs to account for
3 - Analyze flow of physical units
4 - Assign total manufacturing costs
5 - Compute unit costs

• A)3, 5, 2, 1, 4.
• B)2, 1, 5, 4, 3.
• C)2, 3, 5, 4, 1.
• D)3, 1, 2, 5, 4.
• E)None of the above.

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Definitions:

Rent

A payment made periodically by a tenant to a landlord in exchange for the use of land, a building, or another property.

Fixed Costs

Costs that do not change with the level of output in the short term, such as rent, salaries, and insurance.

Variable Costs

Costs that vary directly with the level of production, such as materials and labor.

MC

In economics, MC typically refers to Marginal Cost, which is the cost of producing one more unit of a good.