23.

Costs of normal shrinkage and normal continuous losses in a process costing environment are
handled

by the method of neglect.

ANS: T DIF: Moderate OBJ: 6-8

24. Costs of normal shrinkage and normal continuous losses in a process costing environment are
handled

by the method of accretion.

ANS: F DIF: Moderate OBJ: 6-8

25. A continuous loss is assumed to occur at a specific point in the production process.

ANS: F DIF: Easy OBJ: 6-8

26. A discrete loss is assumed to occur at a specific point in the production process.

ANS: T DIF: Easy OBJ: 6-8

27. Abnormal spoilage is always accounted for on an equivalent unit basis.

ANS: T DIF: Easy OBJ: 6-8

COMPLETION

1. All manufacturing costs other than direct materials are referred to as _______________________

ANS: conversion costs

DIF: Easy OBJ: 6-1