SOLVED

Objective 6 1) Job order costing is an approach to costing that estimates costs for specific customer orders because the orders vary from customer to customer. 2) An example of a situation in which process costing might be used would be a consulting engagement. 3) The goal of both job order costing and process costing is accurate product cost. 4) Process costing systems are used when products manufactured are relatively homogeneous and there are few and relatively small differences in the production requirements for different products. 5) While costs are measured for individual jobs in a job order costing system, they are measured for individual process stages in a process costing system. 6) Costing systems that are used for the costing of like or similar units of products in mass production are called: A) inventory-costing systems. B) job order costing systems. C) process-costing systems. D) conversion costing systems. 7) Process costing: A) allocates conversion costs. B) results in different costs for different jobs. C) is commonly used by general contractors who construct custom-built homes. D) assigns costs to unique jobs based on a overhead cost driver. 8) Which of the following manufactured products would use process costing? A) polo shirts imprinted with individualized logos B) picnic packs containing ketchup, mustard, and relish C) customized boats used for racing D) handmade stained-glass lamps for recreational rooms 9) Process costing should be used to assign costs to products when: A) the units produced are similar. B) the units produced are dissimilar. C) the calculation of unit costs requires the averaging of all manufacturing costs over all units produced. D) Either A or C are present. 10) Which one of the following statements is FALSE? A) In a job order costing system, individual jobs use different quantities of production resources. B) In a process-costing system, each unit uses approximately the same amount of resources. C) An organization that manufactures several types of cereal would use a job order costing system. D) A corporation whose sole business activity is processing the customer deposits of several banks would use a process-costing system.