In a Process Cost System,how Is the Unit Cost Affected

question 35

Multiple Choice

In a process cost system,how is the unit cost affected in a production cost report when materials are added in a department subsequent to the first department and the added materials result in additional units?

• A)It causes an increase in the preceding department's unit cost that necessitates an adjustment of the transferred-in unit cost.
• B)It causes a decrease in the preceding department's unit cost that necessitates an adjustment of the transferred-in unit cost.
• C)It causes an increase in the preceding department's unit cost but does not necessitate an adjustment of the transferred-in unit cost.
• D)It causes a decrease in the preceding department's unit cost but does not necessitate an adjustment of the transferred-in unit cost.

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