Which of the Following Is an Assumption Implicit in Process-Costing

question 70

Multiple Choice

Which of the following is an assumption implicit in process-costing?

• A)All completed units receive more direct material inputs than units in process.
• B)All completed units receive less direct material inputs than units in process.
• C)Opening inventory is always nil, for the cost calculations.
• D)Ending inventory is always nil, for the cost calculations.
• E)All completed units receive the same amount of direct material inputs and the same amount of conversion costs.

---

Definitions:

Average Fixed Costs

The total fixed costs of production divided by the number of units produced, showing how fixed costs per unit change with production levels.

Output Decreases

A reduction in the amount of goods or services produced by a company or economy over a specific period.

Total Variable Cost

The overall expenses that change in proportion to the level of production or business activity.

Average Fixed Cost

The total fixed costs of production divided by the quantity of output produced, showing the cost of fixed resources per unit of output.