Cost Accounting, 14e, Test Bank Ch17
Cost Accounting ()ةيمالسإال ةعماجال
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,Cost Accounting, 14e, Globa Edition (Horngren/Datar/Rajan) F
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
F F F F F F F F F F F F F F F F F F
are called:
F
A) inventory-costing systems F
B) job-costing systems F
C) process-costing systems F
D) weighted-average costing systems F F F
Answer: C F
Diff: 1F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
2) Which of the following manufactured products would NOT use process costing?
F F F F F F F F F F
A) 747 jet aircraftF F
B) 46-inch television sets F F
C) Construction of a commercial office building F F F F F
D) Both A and C are correct.
F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
3) Process costing should be used to assign costs to products when the:
F F F F F F F F F F F
A) units produced are similar
F F F
B) units produced are dissimilar
F F F
C) calculation of unit costs requires the averaging of unit costs over all units produced
F F F F F F F F F F F F F
D) Either A or C are correct. F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
4) Which one of the following statements is true?
F F F F F F F
A) In a job-costing system, individual jobs use different quantities of production resources.
F F F F F F F F F F F
B) In a process-costing system each unit uses approximately the same amount of resources.
F F F F F F F F F F F F
C) An averaging process is used to calculate unit costs in a job-costing system.
F F F F F F F F F F F F
D) Both A and B are correct.
F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
1
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F F F F
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,5) Conversion costs: F
A) include all the factors of production
F F F F F
B) include direct labor and overhead
F F F F
C) in process costing are usually considered to be added evenly throughout the production process
F F F F F F F F F F F F F
D) Both B and C are correct.
F F F F F F
Answer: D F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
6) An example of a business which would have no beginning or ending inventory but which could use
F F F F F F F F F F F F F F F F F
process costing to compute unit costs would be a:
F F F F F F F F
A) clothing manufacturer F
B) corporation whose sole business activity is processing the customer deposits of several banks
F F F F F F F F F F F F
C) manufacturer of custom houses F F F
D) manufacturer of large TVs F F F F
Answer: B F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
7) Which of the following statement(s) concerning conversion costs is correct?
F F F F F F F F F
A) Estimating the degree of completion of direct materials in a partially completed unit is usually easier
F F F F F F F F F F F F F F F F
to calculate than estimating the degree of completion for conversion costs.
F F F F F F F F F F
B) The calculation of equivalent units is relatively easy for the textile industry.
F F F F F F F F F F F
C) Estimates are usually not considered acceptable.
F F F F F
D) Both B and C are correct.
F F F F F F
Answer: A F
Diff: 2
F
Terms: process-costing system, equivalent units
F F F F F
Objective: 1 F
AACSB: Reflective thinkingF F
8) Examples of industries that would use process costing include the soft-drink bottling and oil industry.
F F F F F F F F F F F F F F F
Answer: TRUE F
Diff: 1
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
2
Copyright © 2012 Pearson Education F F F F
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, 9) The principal difference between process costing and job costing is that in job costing an averaging
F F F F F F F F F F F F F F F F
process is used to compute the unit costs of products or services.
F F F F F F F F F F F
Answer: FALSE F
Explanation: The averaging process is used to calculate unit costs in process costing.
F F F F F F F F F F F F F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
10) Process-costing systems separate costs into cost categories according to the timing of when costs are
F F F F F F F F F F F F F F F
introduced into the process. F F F
Answer: TRUE F F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
11) Estimating the degree of completion for the calculation of equivalent units is usually easier for
F F F F F F F F F F F F F F F
conversion costs than it is for direct materials.
F F F F F F F
Answer: FALSE F
Explanation: Estimating the degree of completion is easier for the calculation of direct materials since
F F F F F F F F F F F F F F F
direct materials can be measured more easily than conversion costs.
F F F F F F F F F
Diff: 2
F
Terms: equivalent units
F F F
Objective: 1 F
AACSB: Reflective thinking F F
12) Job-order costing would be most likely used by a firm that produces homogeneous products.
F F F F F F F F F F F F F F
Answer: FALSE F
Explanation: Process costing would be most likely used by a firm that produces homogeneous products.
F F F F F F F F F F F F F F F
Diff: 1
F
Terms: process costing
F F F
Objective: 1 F
AACSB: Reflective thinking F F
13) When identical or similar units of products or services are mass produced, job-costing is used to
F F F F F F F F F F F F F F F F
calculate an average production cost for all units produced.
F F F F F F F F
Answer: FALSE F
Explanation: When identical or similar units of products or services are mass produced, process costing is
F F F F F F F F F F F F F F F F
used to calculate an average production cost for all units produced.
F F F F F F F F F F
Diff: 1
F
Terms: process costing
F F F
Objective: 1 F
AACSB: Reflective thinking F F
3
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F F F F
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Cost Accounting ()ةيمالسإال ةعماجال
Studocu is not sponsored or endorsed by any college or university
Downloaded by Orio Nice ()
,Cost Accounting, 14e, Globa Edition (Horngren/Datar/Rajan) F
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
F F F F F F F F F F F F F F F F F F
are called:
F
A) inventory-costing systems F
B) job-costing systems F
C) process-costing systems F
D) weighted-average costing systems F F F
Answer: C F
Diff: 1F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
2) Which of the following manufactured products would NOT use process costing?
F F F F F F F F F F
A) 747 jet aircraftF F
B) 46-inch television sets F F
C) Construction of a commercial office building F F F F F
D) Both A and C are correct.
F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
3) Process costing should be used to assign costs to products when the:
F F F F F F F F F F F
A) units produced are similar
F F F
B) units produced are dissimilar
F F F
C) calculation of unit costs requires the averaging of unit costs over all units produced
F F F F F F F F F F F F F
D) Either A or C are correct. F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
4) Which one of the following statements is true?
F F F F F F F
A) In a job-costing system, individual jobs use different quantities of production resources.
F F F F F F F F F F F
B) In a process-costing system each unit uses approximately the same amount of resources.
F F F F F F F F F F F F
C) An averaging process is used to calculate unit costs in a job-costing system.
F F F F F F F F F F F F
D) Both A and B are correct.
F F F F F F
Answer: D F
Diff: 2F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
1
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F F F F
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,5) Conversion costs: F
A) include all the factors of production
F F F F F
B) include direct labor and overhead
F F F F
C) in process costing are usually considered to be added evenly throughout the production process
F F F F F F F F F F F F F
D) Both B and C are correct.
F F F F F F
Answer: D F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
6) An example of a business which would have no beginning or ending inventory but which could use
F F F F F F F F F F F F F F F F F
process costing to compute unit costs would be a:
F F F F F F F F
A) clothing manufacturer F
B) corporation whose sole business activity is processing the customer deposits of several banks
F F F F F F F F F F F F
C) manufacturer of custom houses F F F
D) manufacturer of large TVs F F F F
Answer: B F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
7) Which of the following statement(s) concerning conversion costs is correct?
F F F F F F F F F
A) Estimating the degree of completion of direct materials in a partially completed unit is usually easier
F F F F F F F F F F F F F F F F
to calculate than estimating the degree of completion for conversion costs.
F F F F F F F F F F
B) The calculation of equivalent units is relatively easy for the textile industry.
F F F F F F F F F F F
C) Estimates are usually not considered acceptable.
F F F F F
D) Both B and C are correct.
F F F F F F
Answer: A F
Diff: 2
F
Terms: process-costing system, equivalent units
F F F F F
Objective: 1 F
AACSB: Reflective thinkingF F
8) Examples of industries that would use process costing include the soft-drink bottling and oil industry.
F F F F F F F F F F F F F F F
Answer: TRUE F
Diff: 1
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinkingF F
2
Copyright © 2012 Pearson Education F F F F
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, 9) The principal difference between process costing and job costing is that in job costing an averaging
F F F F F F F F F F F F F F F F
process is used to compute the unit costs of products or services.
F F F F F F F F F F F
Answer: FALSE F
Explanation: The averaging process is used to calculate unit costs in process costing.
F F F F F F F F F F F F F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
10) Process-costing systems separate costs into cost categories according to the timing of when costs are
F F F F F F F F F F F F F F F
introduced into the process. F F F
Answer: TRUE F F
Diff: 2
F
Terms: process-costing system
F F F
Objective: 1 F
AACSB: Reflective thinking F F
11) Estimating the degree of completion for the calculation of equivalent units is usually easier for
F F F F F F F F F F F F F F F
conversion costs than it is for direct materials.
F F F F F F F
Answer: FALSE F
Explanation: Estimating the degree of completion is easier for the calculation of direct materials since
F F F F F F F F F F F F F F F
direct materials can be measured more easily than conversion costs.
F F F F F F F F F
Diff: 2
F
Terms: equivalent units
F F F
Objective: 1 F
AACSB: Reflective thinking F F
12) Job-order costing would be most likely used by a firm that produces homogeneous products.
F F F F F F F F F F F F F F
Answer: FALSE F
Explanation: Process costing would be most likely used by a firm that produces homogeneous products.
F F F F F F F F F F F F F F F
Diff: 1
F
Terms: process costing
F F F
Objective: 1 F
AACSB: Reflective thinking F F
13) When identical or similar units of products or services are mass produced, job-costing is used to
F F F F F F F F F F F F F F F F
calculate an average production cost for all units produced.
F F F F F F F F
Answer: FALSE F
Explanation: When identical or similar units of products or services are mass produced, process costing is
F F F F F F F F F F F F F F F F
used to calculate an average production cost for all units produced.
F F F F F F F F F F
Diff: 1
F
Terms: process costing
F F F
Objective: 1 F
AACSB: Reflective thinking F F
3
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F F F F
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