Which of the Following Groups Has the Primary Responsibility for Establishing

question 57

Multiple Choice

Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States?

• A)Securities and Exchange Commission
• B)U.S.Congress
• C)International Accounting Standards Board
• D)Financial Accounting Standards Board

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Definitions:

Equivalent Unit Cost

The costing method used in process costing that calculates the cost per unit taking into consideration the stage of completion of goods in process.

Process Costing

An accounting method used where production is continuous, and costs are assigned to units of product based on the processes they undergo.

Weighted-Average Method

A costing method used in process costing that averages the costs for units in production, combining costs from the current and previous periods.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs necessary to convert raw materials into finished goods.