Accounting: Supply Chain Management Terms and Ans
Chapter 2
Job Order Costing
TRUE/FALSE
1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department.
ANS: T
2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
ANS: T
3. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
ANS: T
4. A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
ANS: F
5. A process cost accounting system accumulates costs for each of the departments or processes within the factory.
ANS: T
6. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.
ANS: T
7. The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.
ANS: F
8. A job order cost system would be appropriate for a crude oil refining business.
ANS: F
9. A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.
ANS: T
10. The job order costing system is not used by service organizations.
ANS: F
11. The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.
ANS: T
12. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work
Job Order Costing
TRUE/FALSE
1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department.
ANS: T
2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
ANS: T
3. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
ANS: T
4. A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.
ANS: F
5. A process cost accounting system accumulates costs for each of the departments or processes within the factory.
ANS: T
6. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.
ANS: T
7. The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.
ANS: F
8. A job order cost system would be appropriate for a crude oil refining business.
ANS: F
9. A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.
ANS: T
10. The job order costing system is not used by service organizations.
ANS: F
11. The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.
ANS: T
12. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work