6.

A ______________ costing system is appropriate where products manufactured have different direct
materials but similar processing techniques.

ANS: hybrid

OBJ: 6-6

7. Costs of normal shrinkage and normal continuous losses in a process costing environment are handled
by the method of ______________.

ANS: neglect

OBJ: 6-8

8. The __________________________ report details all manufacturing quantities and costs, shows
computation of EUP, and indicates cost assignments to goods manufactured.

ANS: cost of production