CGI Corporation Uses a Process Costing System to Manufacture Its

question 70

Multiple Choice

CGI Corporation uses a process costing system to manufacture its product.Which of the following internal controls should CGI use to ensure its human resources employees correctly apply federal laws related to employee performance evaluation?

• A)Adequate supervision
• B)Periodic training
• C)Use of information technology
• D)None of these; since CGI uses a process costing system, it is not likely to have a human resources process.

Calculate the marginal and average costs based on given cost functions.

Determine the optimal level of output to minimize costs or maximize profits.

Understand the implications of production functions on marginal and average costs.

Evaluate the impact of fixed costs on production decisions and break-even analysis.

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Definitions:

Manufacturers

Entities or individuals that produce goods using raw materials and labor, often involving machinery and equipment.

Factory Overhead

Indirect costs related to manufacturing that cannot be directly associated with specific product units, including rent, utilities, and maintenance of equipment.

Labor Costs

The total sum of all wages, benefits, and taxes paid to employees by an employer for work performed.

Period Costs

Expenses that are not directly tied to production activity and are charged to the period in which they are incurred.