MULTIPLE CHOICE QUESTIONS

38.A process cost accounting system is most appropriate when

a.a variety of different products are produced, each one requiring different types of materials, labor, and overhead.

b.the focus of attention is on a particular job or order.

c.similar products are mass-produced.

d.individual products are custom made to the specification of customers.

39.A characteristic of products that are mass-produced in a continuous fashion is that

a.the products are identical or very similar in nature.

b.they are grouped in batches.

c.they are produced at the time an order is received.

d.their costs are accumulated on job cost sheets.

40.A process cost system would be used for all of the following products except

a.chemicals.

b.computer chips.

c.motion pictures.

d.soft drinks.

41.In a process cost system,

a.a Work in Process account is maintained for each product.

b.a materials requisition must identify the job on which the materials will be used.

c.a Work in Process account is maintained for each process.

d.one Work in Process account is maintained for all the processes, similar to a job order cost system.

42.Differences between a job order cost system and a process cost system include all of the following except the

a.documents used to track costs.

b.point at which costs are totaled.

c.unit cost computations.

d.flow of costs.

43.Which of these best reflects a distinguishing factor between a job order cost system and a process cost system?

a.The detail at which costs are calculated.

b.The time period each covers.

c.The number of work in process accounts.

d.The manufacturing cost elements included.

44.Which of the following is a true statement about process cost systems?

a.In process cost systems, costs are accumulated but not assigned.

b.A process cost system has one work in process account for each process.

c.In process cost systems, costs are summarized on job cost sheets.

d.Unit costs are not computed in process cost systems.

45.Which of the following is correct regarding cost systems?

Job OrderProcess

a.Work in process accountseveralone for each process

b.Work in process accountoneone

c.Work in process accountoneone for each process

d.Work in process accountseveralone

46.In a process cost system, unit costs are determined using a

a.numerator of costs of each job.

b.denominator of units produced during the period.

c.denominator of units produced for the job.

d.denominator of units produced for the day.

47.In process cost accounting, manufacturing costs are summarized on a

a.job order cost sheet.

b.process order cost sheet.

c.production cost report.

d.manufacturing cost sheet.

48.Which of the following manufacturing cost elements occurs in a process cost system?

a.Direct materials.

b.Direct labor.

c.Manufacturing overhead.

d.All of these.

49.In a process cost system, product costs are summarized:

a.on job cost sheets.

b.on production cost reports.

c.after each unit is produced.

d.when the products are sold.

50.When manufacturing overhead costs are assigned to production in a process cost system, they are debited to

a.the Finished Goods Inventory account.

b.Cost of Goods Sold.

c.a Manufacturing Overhead account.

d.a Work in Process account.