Which of the Following Is FALSE Concerning Process Costing

question 52

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:

Reinstated Account

Refers to an account that has been reactivated after being suspended or closed, typically after addressing issues that led to its suspension or fulfilling necessary requirements.

Accounting Equation

The foundational principle in accounting that states assets equal liabilities plus equity.

Note Receivable

A financial asset representing a promise to receive a specific amount of money, sometimes with interest, from another party on a future date.

Dishonored

A term used to describe a cheque or negotiable instrument that a bank refuses to pay or accept due to insufficient funds or other reasons.