Cost Accounting 14th Edition Global Test Bank PDF | Chapter 17 Process Costing | Horngren Datar Rajan | Updated Latest 2025–2026 | Grade A+

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
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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




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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




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