When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis of applying OH costs to WIP?
A DL hours
B DL $
C Maching H
D Cost of materials
Answer: C
The basic cost flow model is:
A BB+TO=TI+EB
B BB+TO-TI=EB
C EB=BB+TI-TO
D EB-BB=TO-TI
E EB+TI-TO=BB
Answer: C
The Cost Flow Diagram includes all of the following except:
A Selling expenses
B DM
C DL
D FMOH
E VMOH
Answer: A
