Chapter 2 Exercise 1 Date: Name of student: Registration Number: 1) Accounting firms, building contractors, and healthcare providers use process costing. A) TRUE B) FALSE 2) A job order cc sting system is used by companies that manufacture batches of unique products or provide specialized services. A) TRUE B) FALSE 3) A process costing system is used when a company produces identical units through a series of production steps. A) TRUE B) FALSE 4) Which of the following companies is most likely to use job order costing? A) a gold refinery B) a law firm C) a surfboard manufacturer D) a soft drink company 5) Which of the following is true due to the advent of ERP systems? A) As ERP systems are software based, they have given way to a more service-based economy. B) As ERP systems track costs more efficiently, the benefit from the cost information outweighs the cost of obtaining the information. C) As ERP systems track costs more efficiently, large quantities of similar products c be produced at lower costs. D) As ERP systems have the ability to trace all production costs to individual units, product costs can now be classified as either direct materials or direct labor. 6) Which of the following would use a process costing system rather than a job ord costing system