To a great extent process costing systems operate in much the same manner as job costing systems.

true   Correct or    falseIncorrect

 

A process costing system is best suited to a manufacturing operation which gives rise to:

uniquely produced inventory items   Incorrect or    homogeneous mass produced itemsCorrect

 

In a process costing system, costs are accumulated on:

cost of production report   Correct or    job cost sheetsIncorrect

 

An equivalent unit is a physical unit stated in terms of:

raw materials    Incorrect or    finished outputCorrect

 

Potentially, a company could have a huge number of equivalent units of production without completing any finished goods.

true   Correct or    falseIncorrect

 

Direct materials, direct labor, and factory overhead are generally introduced at the same time throughout the production process.

true   Incorrect or    falseCorrect

 

In preparing a cost of production report, which step precedes the other?

computing the equivalent unit cost   Correct or    cost assignmentIncorrect

 

In preparing a cost of production report, the analysis of physical units reveals the units to account for. This amount is identical to the equivalent units of materials and conversion costs.

true    Incorrect or    falseCorrect

 

On a cost of production report, the total cost accounted for in the cost assignment section should equal the beginning work in process plus the:

current production cost incurred   Correct or    current conversion cost incurredIncorrect

 

With the weighted-average method of process costing, the units finished during the period are assumed to be both started and completed during the period.

true   Correct or    falseIncorrect

 

With a weighted-average method of process costing, the dollar value of beginning work in process is assumed to be related to:

materials and conversion   Correct or    materials onlyIncorrect

 

The ending work in process equivalent units are assumed to be the same for materials and conversion if a weighted-average process costing method is used.

true   Incorrect or   falseCorrectIncorrect

 

Within the ledger system for a company using process costing techniques, a credit to the Work in Process account for the final processing department would likely indicate:

transfers from a previous department    Incorrect or    transfers to finished goodsCorrectIncorrect

 

Which of the following will likely more likely result in cost objects absorbing a portion of the non-factory costs?

ABC    Correct or    traditional costing methodsIncorrect

 

Generally accepted accounting principles may preclude activity-based costing results because inventory can fail to absorb:

SG&A   Incorrect or   all manufacturing costsCorrect

 

Which of the following techniques will likely result in more cost drivers being used to cost a single product?

conventional costing   Incorrect or    activity-based costingCorrect

 

With activity-based costing, activities are considered to occur at various levels (e.g., unit-level, batch-level, etc.) and the levels are then combined prior to allocating costs.

true   Incorrect or    falseCorrect

 

Activity-based costing results in all costs being assigned to a cost object.

true   Incorrect or    falseCorrect