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    04 - Cost Accounting by Usry (Part2)

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    Aki
    Job order cost accounting systems and process accounting systems differ in how costs are traced to cost objects and orders, and how product profitability is determined. In a job order cost system, direct labor costs are recorded as an increase to Work in Process. Process costing techniques should be used when production involves mass-produced homogeneous units. A characteristic of process costing is that partially processed inventory is restated in terms of completed units. The industry most likely to use process costing is airlines.

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    04 - Cost Accounting by Usry (Part2)

    Uploaded by

    Aki
    93 views3 pages
    Job order cost accounting systems and process accounting systems differ in how costs are traced to cost objects and orders, and how product profitability is determined. In a job order cost system, direct labor costs are recorded as an increase to Work in Process. Process costing techniques should be used when production involves mass-produced homogeneous units. A characteristic of process costing is that partially processed inventory is restated in terms of completed units. The industry most likely to use process costing is airlines.

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    Job order cost accounting systems and process accounting systems differ in how costs are traced to cost objects and orders, and how product profitability is determined. In a job order cost system, direct labor costs are recorded as an increase to Work in Process. Process costing techniques should be used when production involves mass-produced homogeneous units. A characteristic of process costing is that partially processed inventory is restated in terms of completed units. The industry most likely to use process costing is airlines.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    93 views3 pages

    04 - Cost Accounting by Usry (Part2)

    Uploaded by

    Aki
    Job order cost accounting systems and process accounting systems differ in how costs are traced to cost objects and orders, and how product profitability is determined. In a job order cost system, direct labor costs are recorded as an increase to Work in Process. Process costing techniques should be used when production involves mass-produced homogeneous units. A characteristic of process costing is that partially processed inventory is restated in terms of completed units. The industry most likely to use process costing is airlines.

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    COST SYSTEMS AND COST ACCUMULATION

    Cost Accounting by Usry


    A 1. Job order cost accounting systems and process accounting systems differ in the way:

    A. costs are traced to cost objects

    B. orders are taken and in the number of units in the orders

    C. product profitability is determined and compared with planned costs

    D. manufacturing processes can be accomplished and in the number of production runs that may be performed

    in a year

    E. none of the above

    D 2. In a job order cost system, the distribution of direct labor costs usually are recorded as an increase

    in:

    A. Cost of Goods Sold

    B. Factory Overhead Control

    C. Finished Goods

    D. Work in Process

    E. none of the above

    C 3. Process costing techniques should be used in assigning costs to products:

    A. if the product is manufactured on the basis of each order received

    B. when production is only partially completed during the accounting period

    C. if the product is composed of mass-produced homogeneous units

    D. whenever standard costing techniques should not be used

    E. none of the above

    A 4. A characteristic of a process costing system is:

    A. partially processed inventory is restated in terms of completed units

    B. costs are accumulated by order

    C. it is used by a company manufacturing custom machinery

    D. standard costs are not applicable


    COST SYSTEMS AND COST ACCUMULATION
    Cost Accounting by Usry
    E. none of the above

    C 5. The industry most likely to use process costing in accounting for costs is:

    A. road builder

    B. electrical contractor

    C. airlines

    D. automobile repair shop

    E. none of the above

    B 6. In the computation of manufacturing cost per equivalent unit, the weighted average method of

    process costing considers:

    A. current costs only

    B. current costs plus cost of beginning work in process inventory

    C. current costs plus cost of ending work in process inventory

    D. current costs less cost of beginning work in process inventory

    E. none of the above

    B 7. The element of manufacturing cost that supports time tickets is:

    A. materials

    B. labor

    C. factory overhead

    D. all of the above

    E. none of the above

    C 8. The element of manufacturing cost that supports depreciation schedules is:

    A. materials

    B. labor

    C. factory overhead
    COST SYSTEMS AND COST ACCUMULATION
    Cost Accounting by Usry
    D. all of the above

    E. none of the above

    D 9. Work in Process is debited and Materials is credited for:

    A. indirect materials requisitioned to production

    B. the completion of work in process

    C. the sale of completed product

    D. direct materials requisitioned to production

    E. materials returned to the storeroom

    E 10. Factory Overhead Control is debited and Work in Process is credited for:

    A. indirect materials requisitioned to production

    B. the completion of work in process

    C. the sale of completed product

    D. direct materials requisitioned to production

    E. none of the above

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