Multiple Choice Questions:

1) Companies that manufacture identical items through a series of uniform production steps use ________ to determine cost per unit sold.

A) A process costing system

B) A job order costing system

C) The weighted-average method

D) The first-in, first-out method

2) Which of the following businesses is most likely to use a process costing system?

A) An accounting firm

B) A law firm

C) A soda manufacturer

D) A construction company

3) Which of the following statements is true of process costing?

A) It uses one Work in Process Inventory account.

B) It tracks and assigns both period costs and product costs to units produced.

C) It accumulates product costs by production departments.

D) It assigns manufacturing overhead costs to products only in the last production process.

4) Under process costing, the costs incurred by each department are recorded in:

A) A job cost sheet.

B) The Finished Goods Inventory account.

C) The Cost of Goods Sold account.

D) A production cost report.

5) Both job order costing and process costing:

A) Maintain a single Work-in-Process Inventory account.

B) Treat all period costs as product costs.

C) Follow last-in, first-out method for inventory valuation.

D) Have the same type of product costs.

Answer rating: 100% (QA)

1 A... View the full answer