Using Conversion Cost Per Equivalent Unit Is Appropriate for Many

question 21

Multiple Choice

Using conversion cost per equivalent unit is appropriate for many businesses that use process costing because:

• A) All manufacturing costs are entered into the production process in the same period.
• B) Direct labor and factory overhead enter the production process at the same rate.
• C) Equivalent cost per unit is not sufficient measurement of production activity.
• D) The weighted average method of calculating equivalent units requires it.
• E) Direct materials and direct labor are usually entered into the production process at the same rate.

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