Which of the Following Is Not One of the Four

question 27

Multiple Choice

Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system?

• A) Assign and reconcile costs.
• B) Determine the physical flow of units.
• C) Compute the cost per equivalent unit of production.
• D) Determine over or underapplied overhead.
• E) Compute the equivalent units of production.

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Definitions:

Underapplied Overhead

This occurs when the actual manufacturing overhead costs incurred exceed the allocated manufacturing overhead cost.

Cost of Goods

The total cost incurred to manufacture or acquire products sold during a specific period, including direct materials, direct labor, and manufacturing overhead.

Schedule of Cost

A detailed report summarizing the various components of cost involved in producing a product or delivering a service.

Job-Order Costing

A costing method used to accumulate costs associated with a specific batch of products, where each job (or batch) is treated as a separate cost unit.