Learning Objective 4-2
1) Which of the following is not a concern to a manager that utilizes the process-costing system?
A) Per-unit cost is average unit cost applied to similar product.
B) Allocates all of the product costs, including materials and labor.
C) The cost object is known as a unit or multiple units of a distinct product.
D) Cost object is masses of identical or similar units of a product or service.
E) To obtain per-unit cost, divide total product costs of identical products by total number or units produced.
2) In job-costing systems, the cost-object is a unit or multiple units of a distinct product or service called a:
3) Managers use job costing to cost multiple identical units of ________ products.
4) Per-unit cost is the ________ unit cost.
5) In the service sector, an example of the job-costing method is movies produced by Universal Studios.
6) The process costing system is useful to managers when there are masses of identical or similar units of a product or service.
7) In the service sector, an example of an organization that uses the process-costing method is a bank that uses bank-check clearing systems.
8) In the merchandising sector, an example of an organization that utilizes job costing is a company that sends individual items by mail order.
9) In the manufacturing sector, the construction of ships at a company is an example of a company that utilizes job costing.
10) What are the differences of job-costing compared to process-costing systems?
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