1. When using normal costing, which costs never enter the work-in-process account?

   a.applied overhead

   b.actual overhead

   c.direct materials

   d.direct labour

2. Which one of the following is a difference between a job-order cost and a process cost system?

   The manufacturing cost elements are different. The costs flow through the accounts differently. Costs are totalled at different points in the manufacturing process. Three primary costs make up the costs of products in a job-order system, while only two costs are used in process costing.

3. What is the term for products having different consumption ratios for different overhead activities?

   a.activity-based costing

   b.product diversity

   c.overhead diversity

   d.volume costing