Cost Accounting, 14e, Test Bank Ch17
Cost Accounting ()ةيمالسإال ةعماجال
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,Cost Accounting, 14e, Global Edition (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
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,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.
Answer: TRUE
Diff: 1
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
2
Copyright © 2012 Pearson Education
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, 9) The principal difference between process costing and job costing is that in job costing an averaging
process is used to compute the unit costs of products or services.
Answer: FALSE
Explanation: The averaging process is used to calculate unit costs in process costing.
Diff: 2
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
10) Process-costing systems separate costs into cost categories according to the timing of when costs are
introduced into the process.
Answer: TRUE
Diff: 2
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
11) Estimating the degree of completion for the calculation of equivalent units is usually easier for
conversion costs than it is for direct materials.
Answer: FALSE
Explanation: Estimating the degree of completion is easier for the calculation of direct materials since
direct materials can be measured more easily than conversion costs.
Diff: 2
Terms: equivalent units
Objective: 1
AACSB: Reflective thinking
12) Job-order costing would be most likely used by a firm that produces homogeneous products.
Answer: FALSE
Explanation: Process costing would be most likely used by a firm that produces homogeneous products.
Diff: 1
Terms: process costing
Objective: 1
AACSB: Reflective thinking
13) When identical or similar units of products or services are mass produced, job-costing is used to
calculate an average production cost for all units produced.
Answer: FALSE
Explanation: When identical or similar units of products or services are mass produced, process costing
is used to calculate an average production cost for all units produced.
Diff: 1
Terms: process costing
Objective: 1
AACSB: Reflective thinking
3
Copyright © 2012 Pearson Education
Downloaded by Orio Nice ()
Cost Accounting ()ةيمالسإال ةعماجال
Studocu is not sponsored or endorsed by any college or university
Downloaded by Orio Nice ()
,Cost Accounting, 14e, Global Edition (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
Downloaded by Orio Nice ()
,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.
Answer: TRUE
Diff: 1
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
2
Copyright © 2012 Pearson Education
Downloaded by Orio Nice ()
, 9) The principal difference between process costing and job costing is that in job costing an averaging
process is used to compute the unit costs of products or services.
Answer: FALSE
Explanation: The averaging process is used to calculate unit costs in process costing.
Diff: 2
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
10) Process-costing systems separate costs into cost categories according to the timing of when costs are
introduced into the process.
Answer: TRUE
Diff: 2
Terms: process-costing system
Objective: 1
AACSB: Reflective thinking
11) Estimating the degree of completion for the calculation of equivalent units is usually easier for
conversion costs than it is for direct materials.
Answer: FALSE
Explanation: Estimating the degree of completion is easier for the calculation of direct materials since
direct materials can be measured more easily than conversion costs.
Diff: 2
Terms: equivalent units
Objective: 1
AACSB: Reflective thinking
12) Job-order costing would be most likely used by a firm that produces homogeneous products.
Answer: FALSE
Explanation: Process costing would be most likely used by a firm that produces homogeneous products.
Diff: 1
Terms: process costing
Objective: 1
AACSB: Reflective thinking
13) When identical or similar units of products or services are mass produced, job-costing is used to
calculate an average production cost for all units produced.
Answer: FALSE
Explanation: When identical or similar units of products or services are mass produced, process costing
is used to calculate an average production cost for all units produced.
Diff: 1
Terms: process costing
Objective: 1
AACSB: Reflective thinking
3
Copyright © 2012 Pearson Education
Downloaded by Orio Nice ()
