For each of the following statements, circle (T) or (F) to indicate whether the statement is true or false. No Statements True False 1. Managerial accounting focuses on external reporting (T) (F) A job order cost system is most appropriate when a large volume of uniform products are produced. 2. (T) (F) Job-order costing is used in manufacturing companies and process costing is used in service companies 3. (T) (F) 4. There should be a separate job cost sheet for each job. (T) (F) A major purpose of cost accounting is to measure, record, and report product costs. 5. (T) (F) An important feature of a job order cost system is that each job has its own unique characteristics. (T) (F)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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