Reference no: EM13825312
Which of the following statements is (are) true?
1. (A) Activity-based costs per unit are greater than volume-based costs per unit.
(B) Volume-based costing has typically resulted in lower gross margins for high volume products and higher gross margins for low volume products.
Only A is true.
Only B is true.
Both A and B are true.
Neither A nor B are true.
2. Service firms use similar job costing procedures as manufacturing companies. However, a few slight differences exist. Which of the following is not a difference between job costing for service firms and job costing for manufacturing companies?
Service firms generally use fewer direct materials that manufacturing companies.
Service firms' overhead accounts have slightly different titles (e.g., Applied Service Overhead).
Service firms' finished jobs are charged to Cost of Services Billed instead of Cost of Goods Sold.
Service firms' do not use a Work-in-Process account for contracts that are partially complete.
3. Materials are added at the beginning of a process in a process costing system. The beginning Work-in-Process Inventory was 30% complete as to conversion costs. Using first-in, first-out (FIFO) process costing, the total equivalent units for material are
beginning inventory this period for this process.
units started this period in this process.
units started this period in this process plus the beginning inventory.
units started this period in this process plus 70% of the beginning inventory this period.
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