Duran Manufacturing Uses a Process Costing System and Manufactures Its

question 120

Multiple Choice

Duran Manufacturing uses a process costing system and manufactures its product in three departments.Which of the following is NOT a way in which Duran can use the cost per unit of each process?

• A) Duran can look for ways to cut the costs when actual process costs are more than planned process costs.
• B) Duran needs to set the selling price to cover the costs of making the product and provide a profit.
• C) Duran can only use the cost per unit of each process if all units are fully completed at the end of the accounting period.
• D) Duran needs to know the ending balances in the following accounts: Work-In-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.

Understand the components that make up a balance sheet or statement of financial position.

Calculate and interpret net income.

Calculate and interpret return on assets.

Identify the basic financial statements and their exclusions.

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Definitions:

Auto-parts Manager

A professional responsible for overseeing the operations and inventory of an auto-parts store or department.

Promissory Estoppel

A legal principle that prevents a party from withdrawing a promise considered binding, not because of a formal contract, but because it was relied upon by another to their detriment.

Quasi-contract

A legal concept where a court imposes an obligation on a party to prevent unjust enrichment or unfair benefit at the expense of another, even if no actual contract exists.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law of sales and other commercial transactions across American states.