The First Step of the 5-Step Process Costing Procedure Is

question 179

Multiple Choice

The first step of the 5-step process costing procedure is:

• A)compute output in terms of equivalent units.
• B)summarize total costs to account for.
• C)compute the cost per equivalent unit.
• D)summarize the flow of physical units.

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Definitions:

Capital Expenditures

Capital expenditures refer to funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment.

Plant Asset

Long-term tangible assets that are used in the production of goods or services and are not intended for resale.

Productive

Characterized by achieving significant results or output relative to the input or effort expended.

Total Asset Turnover

A financial ratio that measures the effectiveness of a company in utilizing its assets to generate sales or revenue.