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    Job Order Costing Multiple Choice

    Uploaded by

    M Ck
    1. The document discusses job order costing and process costing systems. Job order costing is used when unique products or services are produced in small batches, with costs tracked to each job. Process costing is used when uniform products are produced continuously through repetitive processes. 2. The multiple choice questions ask about different industries and their use of job order versus process costing, as well as concepts like tracing costs, inventory accounts, and cost flows between accounts. 3. The true/false questions cover topics like how costs are accumulated and transferred between departments in a process costing system, as well as which industries typically use process costing.

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    Download as PDF, TXT or read online from Scribd

    Job Order Costing Multiple Choice

    Uploaded by

    M Ck
    214 views3 pages
    1. The document discusses job order costing and process costing systems. Job order costing is used when unique products or services are produced in small batches, with costs tracked to each job. Process costing is used when uniform products are produced continuously through repetitive processes. 2. The multiple choice questions ask about different industries and their use of job order versus process costing, as well as concepts like tracing costs, inventory accounts, and cost flows between accounts. 3. The true/false questions cover topics like how costs are accumulated and transferred between departments in a process costing system, as well as which industries typically use process costing.

    Original Description:

    Cost Accounting Theories for Process Costing

    Original Title

    CostAcc Theories

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    1. The document discusses job order costing and process costing systems. Job order costing is used when unique products or services are produced in small batches, with costs tracked to each job. Process costing is used when uniform products are produced continuously through repetitive processes. 2. The multiple choice questions ask about different industries and their use of job order versus process costing, as well as concepts like tracing costs, inventory accounts, and cost flows between accounts. 3. The true/false questions cover topics like how costs are accumulated and transferred between departments in a process costing system, as well as which industries typically use process costing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    214 views3 pages

    Job Order Costing Multiple Choice

    Uploaded by

    M Ck
    1. The document discusses job order costing and process costing systems. Job order costing is used when unique products or services are produced in small batches, with costs tracked to each job. Process costing is used when uniform products are produced continuously through repetitive processes. 2. The multiple choice questions ask about different industries and their use of job order versus process costing, as well as concepts like tracing costs, inventory accounts, and cost flows between accounts. 3. The true/false questions cover topics like how costs are accumulated and transferred between departments in a process costing system, as well as which industries typically use process costing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    JOB ORDER COSTING

    Multiple Choice:

    1. An industry that would most likely use job order costing procedures is:
    A. road building
    B. fertilizer manufacturing
    C. flour milling
    D. petroleum refining
    E. textile manufacturing

    2. An industry that would most likely use process costing procedures is:
    A. vintage car
    B. construction
    C. wedding cake
    D. chemicals
    E. custom jewelry

    3. Supplies needed for use in the factory are issued on the basis of:
    A. materials requisitions
    B. time tickets
    C. factory overhead analysis sheets
    D. clock cards
    E. purchase invoices

    4. Finished Goods is increased and Work in Process is decreased for a:


    A. transfer of materials to the factory
    B. return of unused materials from the factory
    C. purchase of goods on account
    D. transfer of completed production
    E. transfer of completed goods out of the factory

    5. The best cost accumulation procedure to use when many batches, each differing as to
    product specifications, are produced is:
    A. absorption
    B. job order
    C. process
    D. actual
    E. standard
    6. Job order costs are most useful for:
    A. determining the cost of a specific project
    B. determining the labor cost involved in production
    C. determining inventory valuation using fifo
    D. estimating overhead costs
    E. controlling indirect costs of future production

    7. Under a job order cost system, the peso amount of the entry to transfer the inventory
    from Finished Goods to Cost of Goods Sold is the sum of the costs charged to all jobs:
    A. completed during the period
    B. started in process during the period
    C. in process during the period
    D. completed and sold during the period
    E. sold during the period

    8. The industry most likely to use job order costing in accounting for costs is:
    A. accounting firms
    B. textile manufacturer
    C. paint manufacturer
    D. oil refinery
    E. none of these

    9. Job order cost accounting systems and process accounting systems differ in the way:

    A. costs are traced to cost objects


    B. orders are taken and in the number of units in the orders
    C. product profitability is determined and compared with planned costs
    D. manufacturing processes can be accomplished and in the number of
    production runs that may be performed in a year
    E. none of the above

    10. In a job order cost system, the distribution of direct labor costs usually are recorded
    as an increase
    in:
    A. Cost of Goods Sold
    B. Factory Overhead Control
    C. Finished Goods
    D. work in process
    E. none of these
    PROCESS COSTING

    TRUE OR FALSE. Write the word true if the statement is true, otherwise write the
    word false.

    1. (FALSE) Process costing is used when unique units are produced through an
    ongoing series of uniform steps

    2. (TRUE) A utility such as the water company would typically use a process costing
    process.

    3. (FALSE) Costing is easier in process costing than in job order costing.

    4. (FALSE) In process costing, only one Work in Process account is maintained

    5. (TRUE) If materials are added 100% at the beginning of the process, then the
    work in process end will get 100%.

    6. (TRUE) If all units do go through all processing departments, then the department
    are probably arranged in a sequential pattern.

    7. (TRUE) It is important to identify labor costs with each customer order in a process
    costing system.

    8. (FALSE) In a process costing system, costs incurred in one department remain


    there rather than being transferred on to the next department.

    9. (FALSE) If processing departments are arranged in a parallel manner, all units will
    go through all departments.

    10. (TRUE) A gasoline refinery is most likely to account its products with a
    process costing system.

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