Michael-Inc

question 6

Multiple Choice

Michael-Inc. uses a process-costing system. A newly hired accountant has identified the following procedures that must be performed by the close of business on Friday: 1-Calculation of equivalent units
2-Analysis of physical flows of units
3-Assignment of costs to completed units and units still in process
4-Calculation of unit costs
Which of the following choices correctly expresses the proper order of the preceding tasks?

• A)1, 2, 3, 4.
• B)1, 2, 4, 3.
• C)1, 4, 3, 2.
• D)2, 1, 4, 3.
• E)2, 1, 3, 4.

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Definitions:

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into a country over a set period of time.

Protective Tariff

A tariff imposed by a country on imported goods to protect domestic industries from foreign competition by making imported goods more expensive.

Export Subsidy

A government policy to encourage export of goods and discourage sale within the domestic market through direct payments, tax relief for exporters, or subsidizing part of the cost.

Voluntary Export Restriction

An agreement between exporting and importing countries where the exporter voluntarily limits the quantity of goods exported to avoid stronger restrictive measures.