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Question(s) / Instruction(s):

All of the following statements about an operation-costing system are true except:

a)            direct material and conversion costs are traced to each batch of product produced.

b)            direct-material cost is traced to each batch produced.

c)            conversion costs are applied to products on a departmental basis using a predetermined application rate.

d)            batches of product pass sequentially through the same processes.

e)            conversion activities are similar across product lines but direct materials differ significantly.

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