19A1 - Cost Accounting - Process Costing (I)

Which of the following items is not characteristic of a process costing system?

• Once production begins, it continues until the finished product emerges.

• The focus is on continually producing homogeneous products.

• The products produced are heterogeneous in nature.

• When the finished product emerges, all units have precisely the same amount of materials, labor and overhead.

In process costing system, when partially completed units are expressed in terms of fully completed units they are known as:

• completed units.

• equivalent units

• unfinished units

• transferred units

While preparing the cost of production report of a processing department, the per unit cost from preceding department needs to be adjusted when the:

• normal loss is identified during the process

• normal loss is identified at the end of process

• abnormal loss is identified during the process

• abnormal loss is identified at the end of process

......... is a costing system that assigns costs equally to homogeneous units within a particular time period.

Direct labor and manufacturing overhead are often combined into one cost called ……….