Chapter 6 - Process Costing

Question 1

Which type of costing system works best with a large number of homogeneous products?

Answer 1

Process costing

Question 2

Which of the following are included in conversion costs?

1) direct labour and manufacturing overhead

2) direct materials and administrative costs

3) direct materials and manufacturing overhead

4) direct labour and administrative costs

Answer 2

1) direct labour and manufacturing overhead