What Is the Second Step of Process Costing

question 29

Multiple Choice

What is the second step of process costing?

• A)Summarize the flow of physical units of output.
• B)Compute output in terms of equivalent units.
• C)Summarize total costs to account for.
• D)Compute cost per equivalent unit.
• E)Assign total costs to units completed and to units in ending work in progress.

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit.

Pareto Optimal

A state of distributing resources that precludes the possibility of augmenting the status of any participant or preference without detriment to another.

Positive Externalities

Benefits that are enjoyed by a third-party or society as a whole as a result of an economic transaction or activity, without them directly paying for it.

Utility Function

A mathematical representation that describes how consumers rank preferences among different commodity bundles.