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Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 17 Process Costing Objective 17.1 1) 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-costing systems C) process-costing systems D) weighted-average costing systems Answer: C Diff: 1 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 2) Which of the following manufactured products would NOT use process costing? A) 747 jet aircraft B) 46-inch television sets C) Construction of a commercial office building D) Both A and C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 3) Process costing should be used to assign costs to products when the: A) units produced are similar B) units produced are dissimilar C) calculation of unit costs requires the averaging of unit costs over all units produced D) Either A or C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 4) Which one of the following statements is true? A) In a job-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 averaging process is used to calculate unit costs in a job-costing system. D) Both A and B are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 1 Copyright 2012 Pearson Education, Inc. 5) Conversion costs: A) include all the factors of production B) include direct labor and overhead C) in process costing are usually considered to be added evenly throughout the production process D) Both B and C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 6) An example of a business which would have no beginning or ending inventory but which could use process costing to compute unit costs would be a: A) clothing manufacturer B) corporation whose sole business activity is processing the customer deposits of several banks C) manufacturer of custom houses D) manufacturer of large TVs Answer: B Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 7) Which of the following statement(s) concerning conversion costs is correct? A) Estimating the degree of completion of direct materials in a partially completed unit is usually easier to calculate than estimating the degree of completion for conversion costs. B) The calculation of equivalent units is relatively easy for the textile industry. C) Estimates are usually not considered acceptable. D) Both B and C are correct. Answer: A Diff: 2 Terms: process-costing system, equivalent units Objective: 1 AACSB: Reflective thinking 8) Examples of industries that would use process costing include the soft-drink bottling and oil industry. ... View Full Document

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