Which of the Following Accounting Methods Is Generally Used to Compute

question 173

Multiple Choice

Which of the following accounting methods is generally used to compute amortization expense?

• A) declining-balance
• B) units-of-production
• C) straight-line
• D) first-in, first-out

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Definitions:

Process Costing

A costing method used in manufacturing where costs are assigned to batches or lots of products, suitable for continuous or repetitive processes.

Conversion Costs

Conversion costs are the costs required to convert raw materials into finished products, including both direct labor costs and manufacturing overhead costs.

Equivalent Units

A concept in cost accounting used to express the amount of work done by an incomplete process on units of output, making partial units comparable to complete units.

Process Costing

An accounting methodology used for homogenous products that averages production costs over all units produced.