Which of the Following Is Not One of the Four

question 90

Multiple Choice

Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system?

• A) Determine over or underapplied overhead.
• B) Determine the physical flow of units.
• C) Compute equivalent units of production.
• D) Compute the cost per equivalent unit.
• E) Assign and reconcile costs.

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Definitions:

Demand

A claim; a legal obligation; a request to perform an alleged obligation; a written statement of a claim. In corporation law, a request that the board of directors sue a person who has harmed the corporation; a prerequisite to a shareholder derivative suit.

Commercial Paper

Negotiable paper such as promissory notes, drafts, and checks that provides for the payment of money and can readily be transferred to other parties.

Unconditional Order

A directive that must be followed without any stipulations or requirements.

Instrument

A formal legal document that grants rights, imposes duties, or records a transaction, such as a contract, will, or deed.