Process Costing Is Applicable to Production Operations That

question 138

Multiple Choice

Process costing is applicable to production operations that

• A)utilize several processes,departments,or work cells in a series.
• B)do not assign overhead costs to operations.
• C)produce products that are made to order.
• D)produce unique products.

---

Definitions:

Employee Salaries and Wages

Payments made to employees for their labor, including both fixed salaries and variable wages.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for more accurate forecasting and planning.

Planning Budget

A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.

Budgeted Overhead Cost

The anticipated indirect costs of production planned for a specific period, often part of a company's operating budget.