Four Steps Are Necessary in Preparing a Production Cost Report

question 30

Multiple Choice

Four steps are necessary in preparing a production cost report: 1.Compute output in terms of equivalent units of production
2) Assign costs to units completed and units in process
3) Summarize the flow of physical units
4) Compute the cost per equivalent unit of production
Place these steps in the correct order.

• A) 1, 3, 2, 4
• B) 3, 1, 4, 2
• C) 2, 1, 4, 3
• D) 4, 2, 1, 3

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Definitions:

Transfer Warranties

Legal assurances provided during the transfer of assets, ensuring certain conditions or elements are true or will be upheld.

Note

A short written record intended to assist the memory or serve as a temporary communication.

Primarily Liable

Being directly responsible or obligated in a legal or financial context, often referring to the party most accountable for fulfilling an obligation.

Authorized

Having official permission or power to do something or for something to take place.