Process Costing Does Not

question 33

Multiple Choice

Process costing does not:

• A)Trace direct costs to a specific production process.
• B)Provide information about cost of goods manufactured on a per-unit basis.
• C)Average direct and indirect costs across mass-produced identical units.
• D)Apply overhead using an activity base.

---

Definitions:

Scarce Supply

A situation where the availability of a product or service is limited relative to the desire or demand for it.

Market System

A market economy characterized by investment, production, and distribution decisions that are influenced by the forces of supply and demand, with the prices of goods and services being established in a system where they are allowed to fluctuate freely.

Private Ownership

The legal possession of assets, resources, or property by individuals or corporations rather than by the state or public entities.

Consumer Sovereignty

The concept that consumers' preferences and choices dictate the production and consumption of goods and services in an economy.