In a Manufacturing Process-Costing Setting,each Unit Receives the Same or Similar

question 54

True/False

In a manufacturing process-costing setting,each unit receives the same or similar amounts of direct material costs,direct manufacturing labor costs,and indirect manufacturing costs.

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Definitions:

Net Operating Income

An entity’s income after all operating expenses have been deducted from total revenue, excluding taxes and interest charges.

Variable Costing

A costing method in which fixed manufacturing overhead is not assigned to the product, but rather treated as an expense of the period.

Absorption Costing

is an accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed manufacturing overhead—in the cost of a product.

Unit Product Cost

The total cost incurred to produce, manufacture, or acquire a product, divided by the total number of units produced.