Which of the following is an assumption implicit in process-costing?
A)All completed units receive more direct material inputs than units in process.
B)All completed units receive less direct material inputs than units in process.
C)Opening inventory is always nil, for the cost calculations.
D)Ending inventory is always nil, for the cost calculations.
E)All completed units receive the same amount of direct material inputs and the same amount of conversion costs.

Question

Quizplus · Accepted Answer

Process-costing assumes that all completed units receive the same amount of direct material inputs and the same amount of conversion costs, which helps to simplify the cost calculation process. This assumption is necessary to apply a uniform cost to all units produced in a specific process.

Which of the Following Is an Assumption Implicit in Process-Costing