Select the True Statement Regarding Process Costing

question 74

Multiple Choice

Select the true statement regarding process costing.

• A) The degree of completion for conversion costs in ending work-in-process depends on the amount of direct materials used during the period.
• B) Because it tracks beginning inventory's actual costs of completion, the weighted-average method is the most accurate process costing system.
• C) Estimating the degree of completion is usually easier for conversion costs than for transferred-in costs.
• D) Estimating the degree of completion is usually easier for direct materials than for conversion costs.
• E) The accuracy of the completion percentages depends on the accounting system used.

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