(Appendix 6A)If a Company Uses Two Different Unit Cost Figures

question 17

Multiple Choice

(Appendix 6A) If a company uses two different unit cost figures to cost transfers from one department to another under a process costing system,then which of the following statements is reasonable to assume?

• A) There was no beginning work-in-process inventory.
• B) Processing centres are arranged in a sequential pattern.
• C) The FIFO cost method is being used.
• D) The weighted-average cost method is being used.

---

Definitions:

Damages

Compensation sought or awarded in a legal proceeding as a remedy for breach of contract or tortuous act.

Fair Labor Standards Act

The Fair Labor Standards Act is a United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting employees in the private sector and in federal, state, and local governments.

Double-Pay

A situation where an individual receives twice the amount of payment that is due for a particular period or task, often due to an error or as a special compensation.

Workers Compensation System

The structured process through which employees can receive benefits and compensation for work-related injuries or illnesses.