Quiz 2 part i

Question 1

Equivalent Units must be calculated as part of the process in properly determining the per-unit costs of direct materials and conversion costs for the period.

a. True
b. False

Answer 1

a. True

Question 2

Which of the following is not an example of a type of company that would likely prefer a process costing system?

a. Oil Refining
b. Electricity Generation
c. Home Building
d. Packaged Food Production

Answer 2

c. Home Building

Question 3

Using activity-based costing results in a different total amount of overhead allocated than that allocated under traditional costing models.

a. True
b. False

Answer 3

b. False