Process Costing System Part 1 MULTIPLE CHOICE
31. 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
32. Which of the following manufactured products would not use process costing?
a. 767 jet aircraft
b. 19-inch television sets
c. Custom built houses
d. Both a and c are correct.
Answer: d
33. 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
34. 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
, 35. Conversion costs:
a. include all the factors of production
b. include direct materials
c. in process costing are usually considered to be added evenly throughout the
production process
d. Both b and c are correct.
Answer: c
36. 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
37. 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
38. The purpose of the equivalent-unit computation is to:
a. convert completed units into the amount of partially completed output units that could
be made with that quantity of input.
b. assist the business in determining ending inventory.
c. convert partially completed units into the amount of completed output units that could
be made with that quantity of input.
d. Both b and c are correct.
Answer: c
31. 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
32. Which of the following manufactured products would not use process costing?
a. 767 jet aircraft
b. 19-inch television sets
c. Custom built houses
d. Both a and c are correct.
Answer: d
33. 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
34. 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
, 35. Conversion costs:
a. include all the factors of production
b. include direct materials
c. in process costing are usually considered to be added evenly throughout the
production process
d. Both b and c are correct.
Answer: c
36. 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
37. 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
38. The purpose of the equivalent-unit computation is to:
a. convert completed units into the amount of partially completed output units that could
be made with that quantity of input.
b. assist the business in determining ending inventory.
c. convert partially completed units into the amount of completed output units that could
be made with that quantity of input.
d. Both b and c are correct.
Answer: c
