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

Question

Quizplus · Accepted Answer

Process cost system is typically used by companies whose products are indistinguishable from each other, as it calculates the average cost over a large number of identical units.

Answer: A
 Job order cost system is used when products are unique and have different production requirements.

Answer: C
 Activity-based costing is used when overhead costs cannot be easily assigned to specific products or services.

Answer: E
 Over applied overhead occurs when the estimated amount of overhead is greater than the actual amount incurred.

Answer: D
 Under applied overhead occurs when the estimated amount of overhead is less than the actual amount incurred.

Answer: F
 Finished goods ledger is a record that shows the cost of goods completed and available for sale.

Answer: G
 Materials ledger is a record that shows the cost of the materials purchased and used in production.

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