Which of the Following Characteristics Applies to Process Cost Accounting

question 138

Multiple Choice

Which of the following characteristics applies to process cost accounting but not to job order cost accounting?

• A) Use of a predetermined overhead rate.
• B) Identifiable lots of production.
• C) Equivalent units of production.
• D) Labor time ticket for each employee.
• E) Use of a single Goods in Process Inventory account.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output, representing the per-unit cost of production.

Short Run

The short run in economics refers to a period during which at least one input, such as plant size, is fixed and cannot be changed by the firm.

Competitive Firm

A company operating in a market where it has to compete with other firms for consumers, and has no power to set the price of its products, leading to market-driven pricing strategies.

Monopolistically Competitive Industry

An industry characterized by many firms offering products or services that are similar, but not perfect substitutes, leading to competitive yet differentiated marketplaces.