The work in process inventory account increases when raw materials are placed into production.

Group of answer choices

True

False

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Actual overhead costs are charged to the Work in Process account as they occur.

Group of answer choices

False

True

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The reporting method that includes in the cost of inventory (and cost of goods sold) all product costs, including both fixed and variable costs, is known as:

Group of answer choices

direct costing.

total costing.

absorption costing.

variable costing.

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Which of the following statements regarding a process costing system is false?

Group of answer choices

Unit costs are computed for each department.

Unit cost is determined for a designated period of time.

The number of equivalent units for a period takes into account the stage of completion of ending work in process inventory.

Use of a process costing system would be appropriate for a company that manufactures luxury yachts.