COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Once production begins, it continues until the finished product is complete
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The resulting product is heterogeneous
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The focus is to manufacture homogeneous products
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When the finished product is finished, all units have exactly the same amount of materials, labor, and overhead
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Detailed explanation-1: -Answer and Explanation: The correct answer is option b. The system accumulates costs per job. A process cost system is a cost accounting system that is used by the company in ascertaining the cost of producing a product at a particular process or stage of manufacturing.
Detailed explanation-2: -Answer and Explanation: Correct Answer: Option C. These costs get recognized as expenses immediately as incurred.
Detailed explanation-3: -Which of the following is characteristic of a process costing system? Characteristics of a process costing system include repetitive operations, homogenous products and services, high production volume, low product flexibility, and high standardization.
Detailed explanation-4: -A-The products produced are heterogeneous in nature. This is the correct option because process costing is normally used when the products are HOMOGENEOUS.