(Learning Objective 1) Which of the following is false concerning process costing ? a. It accumulates production costs by activities. b. It transfers costs from one processing department to the next. c. It is well suited for a company whose products are indistinguishable from each other. d. It uses multiple WIP accounts, one for each processing department.

Question

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Answer 1

Textbook Question

Chapter 5, Problem 1QC

(Learning Objective 1) Which of the following is false concerning process costing?

a. It accumulates production costs by activities.
b. It transfers costs from one processing department to the next.
c. It is well suited for a company whose products are indistinguishable from each other.
d. It uses multiple WIP accounts, one for each processing department.

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

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Students have asked these similar questions

Learning Outcomes Addressed: This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline: 1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions 2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products. requirement: kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )

Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. Which of the following manufacturers is most likely to use a process cost system? Purse manufacturer Sports drink manufacturer Automobile manufacturer Guitar manufacturer 2. Process and job order cost systems are similar in that both systems _______. record and summarize product costs classify product costs as direct materials, direct labor, and factory overhead allocate factory overhead costs to products All of these choices are correct.

a. Describe the flow of costs through a product costing system. What specific accounts are involved and how are they used? b. When a single volume based cost driver is used to apply manufacturing overhead, what is the managerial accountant's primary objective in selecting the cost driver? c. Assume Kardan university has decided to replace all professors with teaching robots. How might this switch impact on the university's choice of cost driver as the basis for overhead application? Explain.

Answer 2

Textbook Question

Chapter 5, Problem 1QC

(Learning Objective 1) Which of the following is false concerning process costing?

a. It accumulates production costs by activities.
b. It transfers costs from one processing department to the next.
c. It is well suited for a company whose products are indistinguishable from each other.
d. It uses multiple WIP accounts, one for each processing department.

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

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Answer 3

Textbook Question

Chapter 5, Problem 1QC

(Learning Objective 1) Which of the following is false concerning process costing?

a. It accumulates production costs by activities.
b. It transfers costs from one processing department to the next.
c. It is well suited for a company whose products are indistinguishable from each other.
d. It uses multiple WIP accounts, one for each processing department.

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

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Answer 4

Textbook Question

Chapter 5, Problem 1QC

(Learning Objective 1) Which of the following is false concerning process costing?

a. It accumulates production costs by activities.
b. It transfers costs from one processing department to the next.
c. It is well suited for a company whose products are indistinguishable from each other.
d. It uses multiple WIP accounts, one for each processing department.

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

Answer 8

Expert Solution & Answer

To determine

To identify: The false statement about process costing from the given statements.

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To identify: The false statement about process costing from the given statements.

Answer 12

Answer to Problem 1QC

Option a. It accumulates production cost by activities is the false statement about process costing.

Answer 13

Explanation of Solution

a.

It accumulates production cost by activities: This is the correct option because the production cost of activities is defined as job costing but not as process costing. The activities fall under particular job or various levels of jobs are measured in terms of cost which is incurred. These all costs are combined and the aggregate amount of cost for jobs is determined. So, it is about job costing and not about process costing.

b.

It transfers cost from one processing department to the next: The transfer cost from one processing department to the next is defined as the process costing. E.g. In manufacturing of a particular product, the product needs to go through Center process, Shell process & packaging process to make available to the consumer. So each department incurs a cost, this is costs called as process costing. Thus, the statement is not false about process costing and the said option is incorrect.

c.

It is well suited for the company whose products are indistinguishable from each other: This option is not correct because this statement defines process costing. The process costing is applied for mass production of identical products.

d.

It uses multiple WIP accounts, one for each processing department: This option is incorrect because this statement also defines process costing. In this type, direct material, direct labor & manufacturing overhead is assigned to each process like Center, Shell & packaging. So the WIP of inventory costing is also taken into account for each department. This costing is calculated on the basis of manufacturing overhead. Therefore, the given statement is correctly associated with the process costing.

Answer 14

Ch. 5 - (Learning Objective 1) Which of the following is...Ch. 5 - (Learning Objective 2) Conversion costs consist of...Ch. 5 - (Learning Objective 2) Which of the following is...Ch. 5 - (Learning Objective 3) Which of the following is...Ch. 5 - Prob. 5QC Ch. 5 - (Learning Objective 4) The journal entry needed to...Ch. 5 - (Learning Objective 4) A company has two...Ch. 5 - Prob. 8QC Ch. 5 - Prob. 9QC Ch. 5 - Prob. 10QC

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Answer to Problem 1QC

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