Use the Information Below to Answer the Following Question(s)

question 69

Multiple Choice

Use the information below to answer the following question(s) .Apex Disk Company operates a computer disk manufacturing plant.Direct materials are added at the end of the process.The following data were presented for August:

-Using standard costs simplifies the calculations for which of the following in process-costing?

• A)direct materials
• B)conversion costs
• C)equivalent units
• D)direct materials and conversion costs but standard costs not relevant for equivalent units
• E)direct materials and conversion costs and equivalent units

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Definitions:

Per-Unit Profit

The difference between the selling price of a product and its cost of production on a per-item basis, indicating the profit generated from selling one unit of product.

AVC

Average variable cost refers to the division of the total variable expenses by the quantity of goods produced.

ATC

Average Total Cost, which refers to the total cost per unit of output, including both fixed and variable costs.

MC

In economics, MC stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.