Which Costs Should Be Included in the Calculation of the Cost

question 63

Multiple Choice

Which costs should be included in the calculation of the cost per equivalent unit using the weighted-average method of process costing?

• A) Current period costs only
• B) Current period costs plus those from beginning work-in-process inventory
• C) Current period costs less those from beginning work-in-process inventory
• D) Current period costs less those from ending work-in-process inventory

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Definitions:

Intuitions

Intuitions are immediate understandings, knowledge, or beliefs that come without the need for conscious reasoning.

Explicit Conscious

Direct, clear awareness of mental activities, such as thinking, feeling, and decision-making.

Effortless

Achieved with remarkable ease and without apparent difficulty or exertion.

Representativeness Heuristic

A mental shortcut that involves making judgments about the probability of an event under uncertainty, based on how much it resembles the typical case.