1. Conversion costs in a process cost system include:
Direct materials and direct labor.
Direct labor and manufacturing overhead.
Direct materials and manufacturing overhead.
Manufacturing overhead and selling, general & administrative expenses.
2. The costs of operating a regional warehouse is an example of a:
Customer unit-level cost.
Customer batch-level cost.
Customer-sustaining cost.
Distribution-channel cost.
3. Firms should use a process costing system when they produce products that:
Are semi-homogeneous.
Pass through a series of manufacturing processes.
Pass through only one department.
Have small batch sizes.
4. Which one of the following is a high value-added activity?
Set up.
Rework.
Repair.
Storage.
Processing.
5. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the:
Units completed during the period.
Units spoiled.
Units transferred in during the period.
Units accounted for.