Identify each statement as true or raise. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job order costing and process costing track different manufacturing cost components. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a process cost system, the unit cost is the sum of materials costs and conversion costs, each divided by their respective equivalent units. True V

Identify each statement as true or raise. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job order costing and process costing track different manufacturing cost components. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a process cost system, the unit cost is the sum of materials costs and conversion costs, each divided by their respective equivalent units. True V

Name: Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process
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Description: Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process cost systems are used to apply costs to similar products that are mass-produced in a continuousfashion.A process cost system is used when each finished unit is indistinguishable f

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter15: Lean Accounting And Productivity Measurement

Section: Chapter Questions

Problem 18E: Lean manufacturing uses value streams to produce a family of products that require the same...

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A process costing system Is most likely used by which of the following? airplane manufacturing a paper manufacturing company an accounting firm specializing in tax returns a hospital
Can process costing be used for a service organization? Explain. Describe how process costing can be used for JIT manufacturing firms.
Lean manufacturing uses value streams to produce a family of products that require the same manufacturing sequence. Value-stream costing is an approach often used to determine the unit product costs in a lean manufacturing environment. Which of the following best describes how unit costs are calculated using value-stream costing? a. Value stream costs divided by units shipped b. Value stream costs divided by units produced c. (Total prime costs + overhead costs assigned to the value stream using a plantwide rate) divided by units produced d. Activity-based costing assignments within the value stream
Which of the following production characteristics is better suited for process costing and not job order costing? Each product batch is distinguishable from the prior batch. The costs are easily traced to a specific product. Costs are accumulated by department. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.
Customs has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
The second stage of customer-based activity-based costing entails the assignment of: a. resource costs to sales departments. b. resources costs to distribution channels. c. customer-related activity costs to products. d. customer-related activity costs to customers.
Frenchys has three cost pools and an associated cost driver to allocate the costs to the product. The cost pools, cost driver, estimated overhead, and estimated activity for the cost pool are: What is the predetermined overhead rate for each activity?
Wojtek Nakowski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job-order costing and process costing track different manufacturing cost components. Both job-order costing and process costing account for direct materials, direct labour, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job-order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a…
4. Mr Khizar has prepared the following list of statements about process cost accounting. а. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. b. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. С. d. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing е. track different manufacturing cost elements. f. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Instructions: Identify each statement as true or false. If false, indicate how to correct the statement.
In a process costing system, which of the following would be TRUE? a.There is no need to use time tickets to assign costs to processes. b.There is no need to track materials to processes. c.A process costing system is more expensive to maintain because it has more work-in-process accounts. d.All of these choices are true.
Process costing is used to account for: Answer A finished goods that are refined and processed further. B. large numbers of products that are produced in a non-repetitive process c. small numbers of products that are produced in batches. D. Large numbers of identical products that are produced in a continuous manufacturing environment. E. raw materials that are converted directly to finished goods.
A process costing system is employed in those situations where: O full or absorption cost approach is not employed. where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis. many different products, jobs, or batches of production are being produced each period. a service is performed such as in a law firm or an accounting firm.