1. In process costing, when using the weighted-average method, the cost (value) of beginning WIP inventory is:

   	A.	added to the current period costs to calculate weighted-average costs per equivalent unit for a given period.
   	B.	not shown on the production report.
   	C.	considered separately from costs incurred during the current period.
   	D.	ignored in calculating the costs per equivalent unit for a given period.

4 points

QUESTION 6

1. What type of company would most likely use a process costing system?

   	A.	A manufacturer of high performance business Learjets, such as Bombardier.
   	B.	A construction firm which specializes in outdoor decks and gazebos.
   	C.	A factory which manufactures paper towels.
   	D.	A law firm specializing in copyright protection for authors.

4 points

QUESTION 7

1. Activity-based costing (ABC) systems are similar to "traditional" "one rate" costing systems in the way they

   	A.	Assign Direct Material & Direct Labor Costs to cost objects
   	B.	Trace indirect costs to activities
   	C.	Allocate overhead on the basis of activities that cause overhead cost
   	D.	Define cost allocation bases