Which of the Following Statements Is True

question 122

Multiple Choice

Which of the following statements is true?

• A)The Work in Process Inventory account is the focal point of process costing.
• B)Labor costs are accounted for differently from overhead costs in a process costing system.
• C)Equivalent units usually are computed for direct materials and overhead combined.
• D)A process cost report should be prepared only if the average costing method is used.

---

Definitions:

Third-Party Beneficiary

A recipient of contractual benefits who is not one of the contracting parties; created when two parties enter into a contract with the intended purpose of benefiting a third party.

Creditor Beneficiary

A third party that benefits from a contract made between two other parties, especially in terms of having the right to claim performance or compensation.

Donee Beneficiary

An external party that gains advantages from an agreement established between two different parties.

Delegation

The process of assigning authority and responsibilities to others to carry out specific activities or tasks.