Which of the Following Statements Is True

question 50

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) To compute unit costs using the FIFO process costing approach, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.

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Definitions:

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Accumulated Depreciation

Represents the total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.

Depreciation Expense

The method by which the cost of a tangible or physical asset is allocated over its useful life.

Building

The physical structure intended for housing, manufacturing, or any other commercial or industrial activity.