7 Within the relevant range, variable cost per unit will A. increase as the leve

Question

7 Within the relevant range, variable cost per unit will A. increase as the level of activity increases B. remain constant C. decrease as the level of activity increases D nose of these S. Which of the Sollowing characseristics applies to process costing, but does not apply to job order costing A, the need for averaging. B. the use of equivalent units of peodaction. C separale, idemtifiable jobs D the use of peedesermined overhcad raes 9. The Nichols Company uses the weighted-average method in its process costing systom. The company neoonded 29,500 equivalent department There were 6,000 units in the ending work in process inventory on November 30, t units for conversion costs for November in a particular % complete with respect so conversion costs. consisted of 8,000 units, 50% eonpleewah repect to converían costs. were complieted and transferred out of the department during the month. The narsber of units started daring November in the department was A 24.500 units B 23,000 units C. 27,000 units D 21,000 units sotal of 25,000 units 10. Coaversion costs do NOT inclade B. ditect materials. C. indirect labor. D indivect materials I1. A process costing system A uses a separate Work in Process accoust for each processing department B. uses a single Work in Process account for the entire company C uses a separalc Work in Peocess accoust for each type of product produced D does not use a Werk in Process account in any form Va

Explanation / Answer

Question (7)

Answer: Option (B) Remains constant.

Variable cost per unit always remains constant but the variable cost in total keeps changing with the variation in level of activity.

Question (8)

Answer: Option (B) the use of equivalent units of production applies only to process costing not to job order costing.

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