Reference no: EM132795858

Problem 1: When production (in units) decreases, the average cost per unit of product increases. This increase in the average cost per unit is due to the

a. Increase in variable cost per unit

b. Increase in fixed cost per unit

c. Increase in total variable costs

d. Increase in total fixed costs

Problem 2: Which of the following would least likely use a process costing system?

a. Manufacturer of custom furniture

b. Manufacturer of soft drinks

c. Manufacturer of gasoline

d. Manufacturer of paper

Problem 3: Which of the following is not a basic objective of process costing?

a. Compute an average cost per unit since units are homogeneous

b. Allocate production costs between whole units and partial units

c. Separate production costs into fixed and variable components

d. Determine the amount of production costs that should be transferred to the next department