Cost Accounting 2

Theory

1. In allocating factory service department costs to producing

departments , which one of the following items would most
likely used as an activity based?- Units of electric power
consumed
2. When should process costing techniques be used in assigning
costs to products?- If the product is composed of mass product
homogenous units
3. Which of the following is a characteristic of a process costing
system?- work in process inventory is restated in terms of
completed units
4. From the industries listed below, which one is most likely to use
process costing in accounting for production costs? Newspaper
publisher
5. An equivalent unit of material conversion cost is equal to- the
amount of material or conversion cost necessary to complete
one unit of production
6. The percentage of completion