Which of the Following Is True About Process Costing

question 121

Multiple Choice

Which of the following is true about process costing?

• A) Unit costs are computed by job on the job cost sheet
• B) The department production report is the key document showing the accumulation and disposition of costs by a department.
• C) Costs are accumulated by individual job, regardless of the accounting period during which the work is done.
• D) All units of product are different.

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Definitions:

Bargain Purchase Option

A provision in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

CRA

Canadian Revenue Agency, an agency that administers tax laws for the Canadian government and for most provinces and territories, or Community Reinvestment Act, a U.S. federal law designed to encourage commercial banks and savings associations to help meet the needs of borrowers in all segments of their communities.