my lab

Question 1

avoidable fixed costs

Answer 1

fixed costs that are directly attributable to a division and will be saved as a result of closing that division.

Question 2

unavoidable costs

Answer 2

fixed costs that will remain regardless of whether or not a division is closed.

Question 3

weighted-average process-costing method

Answer 3

calculates the equivalent-unit cost of work done to date and assigns this to equivalent units completed and transferred out of the process and equivalent units in closing WIP stock.

Question 4

FIFO

Answer 4

assigns the costs of the previous period’s equivalent units in opening WIP stock to the first units completed and transferred out of the process and assigns the cost of equivalent units worked on during the current period first to completed beginning stock, then to start and complete new units, and finally to units in closing WIP stock.