In Regards to Budgeted-Conversion Costs,if Some Units Have Not Been

question 19

Multiple Choice

In regards to budgeted-conversion costs,if some units have not been completed,managerial accountants compute the conversion-cost rate by:

• A)adding budgeted conversion costs to the equivalent units of conversion costs.
• B)subtracting budgeted conversion costs from the equivalent units of conversion costs.
• C)multiplying budgeted conversion costs from the equivalent units of conversion costs.
• D)dividing budgeted conversion costs by the equivalent units of conversion costs.
• E)subtracting the budgeted conversion units by the equivalent units of conversion costs.

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Definitions:

Bond Issue

The process of offering bonds for sale to potential investors, typically to raise capital for a corporation or government.

Redeemed

The act of repaying or buying back something, such as repaying a loan, fulfilling a promise, or converting a financial security.

Unamortized Premium

The portion of the bond premium that has not yet been expensed to interest over the life of the bond.

Straight-Line Method

A depreciation technique which evenly spreads the cost of a fixed asset over its useful life.