Cost Accounting 14th Edition Test Bank Chapter 17 Latest 2026–2027 Updated. Verified Questions and Answers on Standard Costs and Variance Analysis. Complete Coverage for Exam Preparation and High Academic Performance.

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
L L L L L L L L L L L L L L L L L L



are called:
L



A) inventory-costing systems L



B) job-costing systems L



C) process-costing systems L



D) weighted-average costing systems L L L



Answer: C L



Diff: 1L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




2) Which of the following manufactured products would NOT use process costing?
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A) 747 jet aircraftL L



B) 46-inch television sets L L



C) Construction of a commercial office building L L L L L



D) Both A and C are correct.
L L L L L L



Answer: D L



Diff: 2L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




3) Process costing should be used to assign costs to products when the:
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A) units produced are similar
L L L



B) units produced are dissimilar
L L L



C) calculation of unit costs requires the averaging of unit costs over all units produced
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D) Either A or C are correct. L L L L L L



Answer: D L



Diff: 2L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




4) Which one of the following statements is true?
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A) In a job-costing system, individual jobs use different quantities of production resources.
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B) In a process-costing system each unit uses approximately the same amount of resources.
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C) An averaging process is used to calculate unit costs in a job-costing system.
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D) Both A and B are correct.
L L L L L L



Answer: D L



Diff: 2L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




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,5) Conversion costs: L



A) include all the factors of production
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B) include direct labor and overhead
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C) in process costing are usually considered to be added evenly throughout the production process
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D) Both B and C are correct.
L L L L L L



Answer: D L



Diff: 2
L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinkingL L




6) An example of a business which would have no beginning or ending inventory but which could use
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process costing to compute unit costs would be a:
L L L L L L L L



A) clothing manufacturer L



B) corporation whose sole business activity is processing the customer deposits of several banks
L L L L L L L L L L L L



C) manufacturer of custom houses L L L



D) manufacturer of large TVs L L L L



Answer: B L



Diff: 2
L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinkingL L




7) Which of the following statement(s) concerning conversion costs is correct?
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A) Estimating the degree of completion of direct materials in a partially completed unit is usually easier
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to calculate than estimating the degree of completion for conversion costs.
L L L L L L L L L L



B) The calculation of equivalent units is relatively easy for the textile industry.
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C) Estimates are usually not considered acceptable.
L L L L L



D) Both B and C are correct.
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Answer: A L



Diff: 2
L



Terms: process-costing system, equivalent units
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Objective: 1 L



AACSB: Reflective thinkingL L




8) Examples of industries that would use process costing include the soft-drink bottling and oil industry.
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Answer: TRUE L



Diff: 1
L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinkingL L




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, 9) The principal difference between process costing and job costing is that in job costing an averaging
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process is used to compute the unit costs of products or services.
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Answer: FALSE L



Explanation: The averaging process is used to calculate unit costs in process costing.
L L L L L L L L L L L L L



Diff: 2
L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




10) Process-costing systems separate costs into cost categories according to the timing of when costs are
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introduced into the process. L L L



Answer: TRUE L L



Diff: 2
L



Terms: process-costing system
L L L



Objective: 1 L



AACSB: Reflective thinking L L




11) Estimating the degree of completion for the calculation of equivalent units is usually easier for
L L L L L L L L L L L L L L L



conversion costs than it is for direct materials.
L L L L L L L



Answer: FALSE L



Explanation: Estimating the degree of completion is easier for the calculation of direct materials since
L L L L L L L L L L L L L L L



direct materials can be measured more easily than conversion costs.
L L L L L L L L L



Diff: 2
L



Terms: equivalent units
L L L



Objective: 1 L



AACSB: Reflective thinking L L




12) Job-order costing would be most likely used by a firm that produces homogeneous products.
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Answer: FALSE L



Explanation: Process costing would be most likely used by a firm that produces homogeneous products.
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Diff: 1
L



Terms: process costing
L L L



Objective: 1 L



AACSB: Reflective thinking L L




13) When identical or similar units of products or services are mass produced, job-costing is used to
L L L L L L L L L L L L L L L L



calculate an average production cost for all units produced.
L L L L L L L L



Answer: FALSE L



Explanation: When identical or similar units of products or services are mass produced, process costing
L L L L L L L L L L L L L L L



is used to calculate an average production cost for all units produced.
L L L L L L L L L L L



Diff: 1
L



Terms: process costing
L L L



Objective: 1 L



AACSB: Reflective thinking L L




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