Match each of the following phrases with the term (a-g) that it most closely describes.
-Typically used by companies whose products are indistinguishable from each other
A)Job order cost system
B)Process cost system
C)Activity-based costing
D)Underapplied overhead
E)Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question

Quizplus · Accepted Answer

Process cost system is typically used by companies whose products are indistinguishable from each other, as it is best suited for the production of identical or similar products in large quantities.

None of the other phrases provided are associated with this characteristic.

- Job order cost system is used when a company produces unique products or services, and the cost of each order must be tracked separately.
- Activity-based costing is a more precise way to allocate costs to products or services based on the activities required to produce them.
- Underapplied overhead occurs when a company's actual overhead costs exceed the amount allocated to products or services using predetermined rates.
- Overapplied overhead occurs when a company's actual overhead costs are less than the amount allocated to products or services using predetermined rates.
- Finished goods ledger and materials ledger are two types of inventory tracking systems.

Match Each of the Following Phrases with the Term (A-G)