Ohio, Inc, Which Uses a Process-Cost Accounting System, Began Operations on on January

question 68

Multiple Choice

Ohio, Inc., which uses a process-cost accounting system, began operations on January 1 of the current year. The company incurs conversion cost evenly throughout manufacturing. If Ohio started work on 3,000 units during the period and these units were 70% of the way through manufacturing, it would be correct to say that the company has:

• A) 3,000 physical units in production.
• B) 2,100 completed units.
• C) 900 in-process units.
• D) 900 equivalent units of production.
• E) 3,000 equivalent units of production.

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Definitions:

Organizational Hierarchy

A system in which people or groups are ranked one above the other according to status or authority within an organization.

Programmed Decision Making

The process of making decisions that are routine or repetitive through the use of established policies, procedures, or rules.

Well-structured Problem

Refers to problems that have clearly defined goals, constraints, and solution paths, making them easier to solve through logical processes.

Uncertainty

A situation where the outcomes or consequences of actions are unpredictable or unknown.