Which of the Following Is False Concerning Process Costing

question 110

Multiple Choice

Which of the following is False concerning process costing?

• A) Process costing can only be used in manufacturing.
• B) Process costing is used when outputs are homogeneous.
• C) In process costing, labour and overhead costs are often combined and classified as conversion costs.
• D) In process costing, some units will be incomplete at the end of the period.
• E) Process costing averages unit costs of production.

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Definitions:

Installation

The process of setting up software or hardware to make it ready for use, or the setting up of machinery or equipment for operational purposes.

Unsatisfactory Performance

The failure to meet established performance standards or expectations in a job or task.

Percentage Completion

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the work completed.