ECONOMICS

Detailed explanation-1: -Discrete production losses are assumed to occur at the specific point in production process and it will be detected only when the firm performed a quality control inspection.

Detailed explanation-2: -Process costing is used when a single product is made on a continuous basis. The units produced are identical. Job order costing is used when different jobs are worked each period. Process costing accumulates manufacturing costs (raw material, direct labor and manufacturing overhead) by processing department.

Detailed explanation-3: -The first-in, first-out process-costing method assumes that units in beginning inventory are completed during the current accounting period. Process costing FIFO is usually applied to both the units entering a department and the units leaving a department.

Detailed explanation-4: -Which of the following does not occur with process costing? The equivalent units transferred out cannot exceed the equivalent units of work done in the period.