Question

TRUE or FALSE 1. In process costing, the units to account for must equal costs accounted...

TRUE or FALSE

1. In process costing, the units to account for must equal costs accounted for.

2. Different amounts of selling & administrative period costs will be charged to expense under Absorption and Variable Costing methods depending on the units produced.

3. An example of a control decision is a proposal to introduce a new product to compete directly with the entity’s competitor.

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Homework Answers

Answer #1

Answer

1.

False.

In step 1 of process costing i.e.. to analyze the flow of physical units through the work-in-process inventory account, the units to be accounted for (inflows) must equal units accounted for (outflows).

2.

False.

Amounts of selling & administrative period costs will be charged to expense in income statement under absorption and variable costing methods depending on the units sold.

3.

False.

A proposal to introduce a new product to compete directly with the entity's competitor is an example of Planning decision.

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