Process Costing: Key Terms

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Questions and Answers

Which of the following best describes the primary function of a pivot table?

Quick summarization of large amounts of data. (correct)
Detailed analysis of individual data points.
Real-time data monitoring and alerts.
Creation of complex financial models.

A waste audit is solely focused on reducing the volume of trash a company produces, and does not consider potential revenue streams from recycling or repurposing.

False (B)

In cost accounting, what do equivalent units represent?

the amount of work done during a period in terms of fully completed units of output

A production cost report ______ a processing departments operations for a period.

summarizes Signup and view all the answers

Match the following terms with their correct descriptions:

Field = An attribute about the data contained in each data record. Transferred-in costs = Costs incurred in a previous process that are carried forward. Weighted-average method of process costing = Combines beginning inventory units (and costs) with the current periods units (and costs). Waste audit = Identify solid waste and scraps that could potentially be recycled or repurposed. Signup and view all the answers

Which of the following is the most direct goal of conducting a waste audit?

All of the above. (D) Signup and view all the answers

Transferred-in costs are irrelevant when using the weighted-average method of process costing.

False (B) Signup and view all the answers

What is the key difference between the weighted-average method and the FIFO method in process costing regarding beginning inventory?

The weighted-average method combines beginning inventory units (and costs) with current period units (and costs), while FIFO keeps them separate. Signup and view all the answers

In a database context, a ______ contains an attribute about the data, and these are contained in each data record.

field Signup and view all the answers

Which of the following is the best application of equivalent units?

Measuring work in progress inventory. (C) Signup and view all the answers

Flashcards

Pivot Table

An interactive table that quickly summarizes large amounts of data.

Waste audit

Studying a company's trash to identify recyclable materials for new revenue streams.

Equivalent units

Expresses work done as fully completed units of output.

Production cost report

Summarizes a processing department's operations for a period.

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Field

Contains an attribute about the data in each record.

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Transferred-in costs

Costs from a previous process that carry forward.

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Weighted-average method of process costing

Combines beginning inventory units/costs with the current period to get a weighted-average cost.

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Study Notes

A pivot table is an interactive table that quickly summarizes large amounts of data.
A waste audit studies the contents of a company's trash to identify solid waste and scraps that could potentially be recycled, repurposed, or sold to create a new revenue stream, and is also known as a trash audit or waste sort.
Equivalent units express the amount of work done during a period in terms of fully completed units of output.
A production cost report summarizes a processing department's operations for a period.
A field contains an attribute about the data and is contained in each data record.
Transferred-in costs are costs incurred in a previous process that are carried forward as part of the product's cost when it moves to the next process.
The weighted-average method of process costing combines any beginning inventory units and costs with the current period's units and costs to get a weighted-average cost.