COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Both a job order and a process cost system track the same three manufacturing cost elements-direct materials, direct labor, and manufacturing overhead.
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A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process accounts.
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Manufacturing costs are accumulated the same way in a job order and in a process cost system.
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Manufacturing costs are assigned the same way in a job order and in a process cost system.
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Detailed explanation-1: -Answer is Option A Explanation: Under job order costing, cost is accumulated at a job level and in process costing system costs are accumulated a…
Detailed explanation-2: -The similarities between job order cost systems and process cost systems are the product costs of materials, labor, and overhead, which are used determine the cost per unit, and the inventory values.
Detailed explanation-3: -The three general categories of costs included in manufacturing processes are direct materials, direct labor, and overhead.
Detailed explanation-4: -Answer: d. The construction of a new campus building. In a job order costing, the costs are applied in each of the job.
Detailed explanation-5: -Typically, job costing includes customer billing to outline the exact cost of each step in the process of a particular job or order. In process costing, costs accumulate by each process or processing department and may not focus on the exact cost of each item in the process.