Deck 14: Job-Order Costing and Process-Costing Systems

Question 1

Nicholson Company uses job order costing.Supporting documents for the Work-In-Process Inventory account do NOT include ________.

A) labor time tickets
B) time cards
C) materials requisition forms
D) schedule of actual factory overhead costs

Answer 1

D

Question 2

The ________ account is supported by a file of job-cost records for completed jobs.

A) Direct Materials Inventory
B) Work-in-process Inventory
C) Finished Goods Inventory
D) Factory Overhead Control

Answer 2

C

Question 3

Process costing averages costs over large numbers of nearly identical products.

Answer 3

True

Question 4

Each job has its own job-cost record in a job-costing system.

Question 5

Job-order costing only applies to specific jobs with a single physical unit.

Question 6

The ________ system is better suited for a single physical unit or a few similar units.

A) process-costing
B) job-order costing
C) activity-based costing
D) activity-based management

Question 7

In job-order costing,all the costs for a particular product or batch of products are recorded on the ________.

A) materials requisition form
B) labor time ticket
C) time card
D) job-cost record

Question 8

The ________ account is supported by a file of job-cost records for partially completed jobs.

A) Direct Materials Inventory
B) Finished Goods Inventory
C) Cost of Goods Sold
D) Work-In-Process Inventory

Question 9

Source documents used in job-order costing include ________.

A) labor time tickets
B) material requisitions
C) time cards
D) all of the above

Question 10

The centerpiece of a job-order costing system is the balanced scorecard.

Question 11

Product costing is an averaging process.This statement pertains to ________.

A) job order costing only
B) process costing only
C) activity-based costing only
D) all of the above

Question 12

Source documents used in job-order costing include material requisition forms and time cards.

Question 13

In job-order costing,actual factory overhead rates are used to apply factory overhead costs to jobs.

Question 14

In job-order costing,time cards record the materials used in particular jobs.

Question 15

Some companies use hybrid costing,which blends the ideas from both job costing and process costing.

Question 16

Carlson Company has two departments.Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B.The following information is available:

Actual data for Job #10 are as follows:

Required:

A) Compute the budgeted factory overhead rate for Department A.
B) Compute the budgeted factory overhead rate for Department B.
C) What is the total overhead cost for Job #10?
D) If Job #10 consists of 50 units of product, what is the unit cost of this job?

Question 17

Three types of costs are accumulated on job-cost records that include direct materials,________ and ________.

A) direct labor; actual factory overhead
B) direct labor; applied factory overhead
C) variable factory overhead; fixed factory overhead
D) direct labor; budgeted factory overhead

Question 18

Hybrid-costing systems use a combination of ________.

A) job-order costing and process costing ideas
B) activity-based costing and absorption costing
C) job-order costing and activity-based costing
D) job-order costing and costing for service organizations

Question 19

Two extremes of product-costing are job-order costing and normal-order costing.

Question 20

Companies that use job-order costing normally have uniform production steps.

Question 21

In a job-order system,the actual factory overhead costs incurred are $150,000.Applied factory overhead costs are $160,000.What entry is needed to dispose of the overhead variance? Use the immediate write-off method.

A) Debit Factory Department Overhead Control, Credit Factory Department Overhead Applied
B) Debit Factory Department Overhead Applied, Credit Cost of Goods Sold
C) Debit Factory Department Overhead Applied, Credit Finished Goods Inventory
D) Debit Factory Department Overhead Control, Credit Cost of Goods Sold

Question 22

A home builder just completed the construction of a new home.The home builder uses job-order costing.Costs of $200,000 were incurred to construct the home.The home is ready for sale and is listed with a real estate broker.Which of the following journal entries is necessary when the home is completed?

A) $\begin{array} { l } \text {Work-In-Process Inventory }&\$200,000\\& \text { Direct Materials Inventory}&\$200,000\\\end{array}$

B) $\begin{array} { l } \text { Finished Goods Inventory}&\$200,000\\& \text { Direct Materials Inventory}&\$200,000\\\end{array}$

C) $\begin{array} { l } \text { Finished Goods Inventory}&\$200,000\\& \text { Work-In-Process Inventory}&\$200,000\\\end{array}$

D) $\begin{array} { l } \text {Cost of Goods Sold }&\$200,000\\& \text {Finished Goods Inventory }&\$200,000\\\end{array}$

Question 23

Conoco Company has an actual factory overhead cost of Depreciation Expense-Equipment of $5,000.Job-order costing is used.The journal entry to record this actual cost would include ________.

A) Debit to Factory Department Overhead Control $5,000 and Credit to Accumulated Depreciation-Equipment $5,000
B) Debit to Depreciation Expense-Equipment $5,000 and Credit to Accumulated Depreciation-Equipment $5,000
C) Debit Work-In-Process Inventory $5,000 and Credit to Factory Department Overhead Control $5,000
D) Debit to Work-In-Process Inventory $5,000 and Credit to Factory Department Overhead Applied $5,000

Question 24

In job-order costing,the journal entry to record the transfer of completed goods from the production area would include a Credit to ________.

A) Cost of Goods Sold
B) Finished Goods Inventory
C) Factory Department Overhead Control
D) Work-In-Process Inventory

Question 25

Job-order costing is used.When direct materials are requisitioned for production,which of the following accounts is credited?

A) Work-In-Process Inventory
B) Accounts Payable
C) Finished Goods Inventory
D) Direct Materials Inventory

Question 26

Direct materials of $10,000 are requisitioned by the production supervisor for the production area.Job-order costing is used.The journal entry to record this transaction is:

A) $\begin{array} { l } \text { Direct Materials Inventory}&\$10,000\\& \text { Accounts payable}&\$10,000\\\end{array}$

B) $\begin{array} { l } \text {Direct Materials Inventory }&\$10,000\\& \text {Work-In-Process Inventory }&\$10,000\\\end{array}$

C) $\begin{array} { l } \text { Work-In-Process Inventory}&\$10,000\\& \text {Direct Materials Inventory }&\$10,000\\\end{array}$

D) $\begin{array} { l } \text { Finished Goods Inventory}&\$10,000\\& \text { Direct Materials Inventory}&\$10,000\\\end{array}$

Question 27

Brankovich Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$90,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 256,000\\ \text { Overhead application rate (based on direct labor cost)}&125\%\\\end{array}$
What is the cost of the ending inventory of Direct Materials?

A) $84,000
B) $90,000
C) $108,000
D) $174,000

Question 28

Williams Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$82,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 256,000\\ \text { Overhead application rate (based on direct labor cost)}&125\%\\\end{array}$
The journal entry to record the cost of goods completed would include a ________.

A) Credit to Finished Goods Inventory for $292,000
B) Credit to Cost of Goods Sold for $256,000
C) Debit to Work-In-Process Inventory for $256,000
D) Credit to Work-In-Process Inventory for $292,000

Question 29

What journal entry is necessary to apply factory overhead to jobs in job-order costing?

A) $\begin{array} { l } \text {Work-In-Process Inventory }&XXX\\& \text { Factory Department Overhead Applied}&XXX\\\end{array}$

B) $\begin{array} { l } \text {Finished Goods Inventory }&XXX\\& \text {Factory Department Overhead Applied }&XXX\\\end{array}$

C) $\begin{array} { l } \text {Factory Department Overhead Control }&XXX\\& \text {Various accounts }&XXX\\\end{array}$

D) $\begin{array} { l } \text {Work-In-Process Inventory }&XXX\\& \text {Factory Department Overhead Control }&XXX\\\end{array}$

Question 30

In a job-order system,accountants apply factory overhead costs to Work-In-Process Inventory by using the ________.The company does not use activity-based costing.

A) actual overhead costs
B) budgeted indirect costs for value chain functions
C) budgeted overhead rate
D) actual overhead rate

Question 31

In job-order costing,a Debit to Work-In-Process Inventory is used to record ________.

A) a sale of merchandise
B) a purchase of direct materials
C) the cost of goods completed
D) a requisition of direct materials for production area

Question 32

Melody Scott Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$82,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 256,000\\ \text { Overhead application rate (based on direct labor cost)}&130\%\\\end{array}$
The journal entry to record the actual factory overhead costs incurred would include a ________.

A) Debit to Factory Department Overhead Control for $146,000
B) Credit to Factory Department Overhead Control for $169,000
C) Debit to Work-In-Process Inventory for $146,000
D) Credit to Work-In-Process Inventory for $169,000

Question 33

In job-order costing,the journal entry to record the application of factory overhead costs to jobs includes a Debit to ________.

A) Factory Department Overhead Control
B) Factory Department Overhead Applied
C) Finished Goods Inventory
D) Work-In-Process Inventory

Question 34

In job-order costing,a debit to Work-In-Process Inventory is used to record ________.

A) a requisition of direct materials for a job
B) the cost of labor used by a job
C) factory overhead applied to a job
D) all of the above

Question 35

In job-order costing,a Debit to Direct Materials Inventory is used to record ________.

A) a requisition of direct materials for production
B) cost of goods completed
C) a sale of goods
D) a purchase of direct materials

Question 36

Gerald Eiche Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$82,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 260,000\\ \text { Overhead application rate (based on direct labor cost)}&125\%\\\end{array}$
The journal entry to record the cost of goods sold would include a ________.

A) Debit to Finished Goods Inventory for $292,000
B) Credit to Finished Goods Inventory for $260,000
C) Credit to Work-In-Process Inventory for $260,000
D) Credit to Cost of Goods Sold for $292,000

Question 37

In job-order costing,a debit to Finished Goods Inventory is used to record the ________.

A) requisition of direct materials
B) cost of goods completed
C) sale of merchandise
D) purchase of direct materials

Question 38

Job-order costing is used.Which of the following accounts is debited when direct labor costs are incurred?

A) Work-In-Process Inventory
B) Finished Goods Inventory
C) Cost of Goods Sold
D) Accrued Payroll

Question 39

In a job-order system,which of the following statements is TRUE?

A) The Work-in-Process Inventory account is increased by the actual factory overhead costs incurred for a job.
B) The Work-in-Process Inventory account is increased by the applied factory overhead costs for a job.
C) The Work-In-Process Inventory account is decreased by the budgeted amount of factory overhead costs for a job.
D) The Work-In-Process Inventory account is increased by the budgeted amount of factory overhead costs for a job.

Question 40

Bernard Bassuluchi Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$82,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 256,000\\ \text { Overhead application rate (based on direct labor cost)}&125\%\\\end{array}$
The journal entry to record the purchase of direct materials would include a ________.

A) Debit to Work-In-Process Inventory for $82,000
B) Debit to Direct Materials Inventory for $148,000
C) Credit to Direct Materials Inventory for $148,000
D) Credit to Work-In-Process Inventory for $148,000

Question 41

In job-order costing,the journal entry to record the completion of units in process would include a Debit to Finished Goods Inventory.

Question 42

In activity-based costing systems,the budgeted overhead rate for products is developed after considering indirect costs for ________.

A) production only
B) production and distribution only
C) all value chain functions
D) production and customer service only

Question 43

In job-order costing,the journal entry to record actual factory overhead costs incurred would include a Credit to Factory Department Overhead Control.

Question 44

In nonprofit organizations,a program is defined as a(n)________.

A) identifiable group of activities that produces outputs in the form of consumable products
B) identifiable group of activities that produces outputs in the form of services
C) class of products
D) none of the above

Question 45

St.Matthew's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\\end{array}$

The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the pre-operating room is ________.

A) $21.00
B) $43.25
C) $66.00
D) $80.00

Question 46

Benville Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\\end{array}$

The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the surgery recovery floor is ________.

A) $42.00
B) $45.75
C) $75.00
D) $80.00

Question 47

One of the primary purposes of an activity-based costing system is to ________.

A) focus on quality improvements in the production process
B) focus on cost reduction in the production process
C) eliminate all overhead costs for manufactured products
D) increase the accuracy of product costs so managers can make better decisions

Question 48

In job-order costing,the journal entry to record applied overhead costs would include a Debit to Work-in-Process Inventory.

Question 49

In job-order costing,the journal entry to record the completion of goods would include a Debit to Cost of Goods Sold.

Question 50

When public accounting firms apply indirect costs to audit engagements,they use ________ or ________ as the cost driver.

A) direct labor cost; equipment usage
B) direct labor cost; direct labor hours
C) hours of equipment use; hours of computer use
D) traveling costs; hours of clerical assistance

Question 51

In nonprofit organizations,the challenge is to apply the costs from various departments to different ________.

A) service organizations
B) nonprofit revenue accounts
C) nonprofit expense accounts
D) programs

Question 52

Regardless of the nature of a company's production system,there will always be resources that are shared among different products.

Question 53

St.Vincent's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\\end{array}$

The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the operating room is ________.

A) $21.00
B) $66.00
C) $69.75
D) $80.00

Question 54

Michael Company uses job-order costing.The company has gathered the following data:

Factory overhead costs are applied at 90% of direct labor costs.
Required:

A) Prepare the required journal entries for the above transactions.
B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.

Question 55

Carpenter Company uses job-order costing.The following is a summary of factory operations:

Factory overhead costs are applied at 50% of direct labor costs.
Required:

A) Prepare the required journal entries for the above transactions.
B) Prepare the journal entry to dispose of the overhead variance using the immediate write-off method.
C) Is the factory overhead overapplied or underapplied?
D) What is the actual, correct amount of Cost of Goods Sold?

Question 56

In job-order costing,the journal entry to record the requisition of direct materials for production would include a Debit to Direct Materials Inventory.

Question 57

An accounting firm is setting the audit fee for a proposed engagement.The budgeted direct professional labor hours are 100 hours at a rate of $100 per hour.Indirect costs are budgeted at 200% of the direct professional labor cost.Travel costs are budgeted at $20,000.If the markup is 100% of total budgeted costs,what is the audit fee?

A) $30,000
B) $50,000
C) $100,000
D) $640,000

Question 58

Examples of activity centers with indirect costs include receiving,testing and packaging.

Question 59

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

A) direct labor cost data is more accurate
B) direct labor cost data is easier to obtain
C) higher paid employees use proportionately less overhead support than lower paid employees
D) higher paid employees use proportionately more overhead support than lower paid employees

Question 60

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.Which of the following journal entries is necessary under the immediate write-off method?

A) $\begin{array} { l } \text { Factory Department Overhead Control}&\$200,000\\& \text {Cost of Goods Sold }&\$200,000\\\end{array}$

B) $\begin{array} { l } \text { Factory Department Overhead Control}&\$2,000\\& \text {Finished Goods Inventory }&\$2,000\\\end{array}$

C) $\begin{array} { l } \text {Cost of Goods Sold }&\$2,000\\& \text {Factory Department Overhead Applied }&\$2,000\\\end{array}$

D) $\begin{array} { l } \text { Cost of Goods Sold}&\$2,000\\& \text { Factory Department Overhead Control}&\$2,000\\\end{array}$

Question 61

Unlike job-order costing,process costing requires only one Work-In-Process Inventory account.

Question 62

In process costing,each department computes the product cost of ________.

A) completed goods transferred out of the department only
B) completed goods waiting to be sold only
C) uncompleted goods in the department only
D) uncompleted goods in the department and completed goods transferred out of the department

Question 63

During the month of May,Sonny Company transferred 140,000 gadgets to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 gadgets in process at May 31 and the gadgets were 75 percent complete with respect to conversion costs.All direct materials are added at the end of the production process.The equivalent units for conversion costs for May are ________.

A) 140,000
B) 150,000
C) 170,000
D) 180,000

Question 64

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Question 65

Elmbrook Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l } \text { Budgeted indirect costs-pre-operating room}&\$84,000 \\ \text {udgeted indirect costs-operating room}&\$ 66,000\\ \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\\ \text { Budgeted nursing hours-pre-operating roo}&4,000 \\ \text {Budgeted nursing hours-operating room }&1,000 \\ \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \\\end{array}$

The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.A patient spent 8 hours in the pre-operating room,4 hours in the operating room and 96 hours on the surgery recovery floor.What amount of indirect costs will be applied to this patient?

A) $336.00
B) $600.00
C) $7,680
D) $8,112

Question 66

In process costing,units that are started but NOT completed by the end of the accounting period are called ________.

A) Cost of Goods Sold
B) ending Direct Materials Inventory
C) ending Work-In-Process Inventory
D) ending Finished Goods Inventory

Question 67

________ is the system that applies costs to similar products that are mass-produced in continuous fashion through a series of production processes.

A) Job-order costing
B) JIT costing
C) Activity-based costing
D) Process costing

Question 68

During the month of May,Masters Company transferred 140,000 gadgets to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 gadgets in process at May 31 and the gadgets were 50 percent complete with respect to conversion costs.All direct materials are added at the end of the production process.The equivalent units for materials for May are ________.

A) 90,000
B) 140,000
C) 160,000
D) 180,000

Question 69

Process costing can be used for ________ activities.

A) manufacturing
B) nonmanufacturing
C) manufacturing and nonmanufacturing
D) none of the above

Question 70

The chemical and glass industries normally use job costing.

Question 71

In a process costing system,which of the following entries is prepared to transfer direct materials from storage to the cooking process?

A) Debit Direct Materials Inventory, Credit Work-In-Process Inventory-Cooking
B) Debit Direct Materials Inventory, Credit Accounts Payable
C) Debit Work-In-Process Inventory-Cooking, Credit Work-In-Process Inventory-Storage
D) Debit Work-In-Process Inventory-Cooking, Credit Direct Materials Inventory

Question 72

Which of the following statements regarding process costing is TRUE?

A) Process-costing systems use a single Work-In-Process Inventory account.
B) Process costing is used for products that are easily separated and individually identifiable.
C) The unit cost for process costing is found by accumulating the costs for all the manufacturing departments and dividing the total by the number of units produced.
D) The process-costing approach does not distinguish between individual units of product.

Question 73

In process costing,a company has some unfinished units at the end of the accounting period.________ units are the number of completed units that could have been produced from the inputs used to create the unfinished units.

A) Physical
B) Convertible
C) Fully-complete
D) Equivalent

Question 74

Assume a company uses process costing and has several processing departments.When goods are transferred from Department X to Department Y,the journal entry requires a Debit to ________ and a Credit to ________.

A) Work-In-Process Inventory-Department X; Work-In-Process Inventory-Department Y
B) Finished Goods Inventory; Work-In-Process Inventory-Department Y
C) Cost of Goods Sold; Finished Goods Inventory
D) Work-In-Process Inventory-Department Y; Work-In-Process Inventory-Department X

Question 75

In a process costing system,which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process?

A) Debit Work-In-Process Inventory-Cooking, Credit Work-In-Process Inventory-Packaging
B) Debit Finished Goods Inventory-Credit Work-In-Process Inventory-Packaging
C) Debit Work-In-Process Inventory-Packaging, Credit Work-In-Process Inventory-Cooking
D) Debit Work-In-Process Inventory-Packaging, Credit Finished Goods Inventory

Question 76

Assume a company uses process costing.When factory overhead is applied to the units in production,Finished Goods Inventory is the Debit part of the journal entry.

Question 77

Managers need to know program costs to make ongoing decisions such as which programs to emphasize or deemphasize and the pricing of programs.

Question 78

In process costing,how many Work-In-Process Inventory accounts are used?

A) none
B) only one
C) one for each processing department
D) at least two for each processing department

Question 79

Which of the following outputs would NOT use a process costing system?

A) flour
B) glass
C) toothpaste
D) building

Question 80

Job-order costing can be used only in manufacturing environments.