1) Cost-accounting systems fulfill two major purposes: (1) they allocate costs to departments for planning and control, and (2) they apply costs to units of product for product costing.

2) All product costing uses averaging to determine total costs of production.

3) Unlike job-order costing, process costing requires only one work-in-process account.

4) Conversion costs include all manufacturing costs other than direct materials.

5) The degree of completion for conversion costs depends on what proportion of the total effort needed to complete one unit or one batch has been devoted to units still in process.

6) The first step in preparing a production-cost report is to calculate unit cost.

7) The last step in preparing a production-cost report is to determine equivalent units.

8) Under weighted-average process costing, the unit costs used for applying costs to products are affected by the total costs incurred to date, regardless of whether those costs were incurred during or before the current period.

9) When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

10) The FIFO process-costing method sharply distinguishes the current work done from the previous work done on the beginning inventory of work-in-process.

11) The key difference between the FIFO and weighted-average computations for WIP inventory is equivalent units.

13) The unique feature of backflush costing is an absence of a cost of goods sold account.

14) Hybrid-costing systems are blends of ideas from both job costing and process costing.

15) Backflush costing is a standardized method or technique that is repetitively performed, regardless of the distinguishing features of the finished product.

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