Student Answer: many different products, jobs, or batches of production are being produced each period. manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. the product moves from department to department before being completed. the unit cost of production is computed by dividing the total production costs by the number of units produced.
Question 7. Question:( TCO B) The FIFO method only provides a major advantage over the weighted-average method in that
Student Answer: the calculation of equivalent units is less complex under the FIFO method. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. the FIFO method provides measurements of work done during the current period. the weighted-average method ignores units in the beginning and ending work-in-process inventories.
Question 8. Question:( TCO C) The contribution margin ratio always increases when the
Student Answer: fixed expenses increase. fixed expenses decrease. variable expenses as a percentage of net sales increase. variable expenses as a percentage of net sales decrease.
Question 9. Question:( TCO C) Which of the following would not affect the break-even point?