Inventory and Direct Labor
Chapter 2--Job Order Costing
Student: ___________________________________________________________________________
1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. True False 2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others. True False 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. True False 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. True False 5. A process cost accounting system accumulates costs for each of the departments or processes within the factory. True False 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. True False 7. The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications. True False 8. A job order cost system would be appropriate for a crude oil refining business. True False 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. True False 10. The job order costing system is not used by service organizations. True False 11. The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit. True False 12. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems. True False 13. When the goods are sold, their costs are transferred
Student: ___________________________________________________________________________
1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. True False 2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others. True False 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. True False 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. True False 5. A process cost accounting system accumulates costs for each of the departments or processes within the factory. True False 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. True False 7. The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications. True False 8. A job order cost system would be appropriate for a crude oil refining business. True False 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. True False 10. The job order costing system is not used by service organizations. True False 11. The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit. True False 12. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems. True False 13. When the goods are sold, their costs are transferred