1. Conversion costs in a process cost system include: (Points : 2)

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: (Points : 2)

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: (Points : 2)

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? (Points : 2)

Set up.

Rework.

Repair.

Storage.

Processing.

5. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: (Points : 2)

Units completed during the period.

Units spoiled.

Units transferred in during the period.

Units accounted for.