Identify each statement as true or raise. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job order costing and process costing track different manufacturing cost components. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a process cost system, the unit cost is the sum of materials costs and conversion costs, each divided by their respective equivalent units. True V

Identify each statement as true or raise. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job order costing and process costing track different manufacturing cost components. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a process cost system, the unit cost is the sum of materials costs and conversion costs, each divided by their respective equivalent units. True V

Name: Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process
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Description: Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process cost systems are used to apply costs to similar products that are mass-produced in a continuousfashion.A process cost system is used when each finished unit is indistinguishable f

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A characteristic of products that are mass-produced in a continuous fashion is that? the products are identical or very similar in nature. they are grouped in batches. they are produced at the time an order is received. their costs are accumulated on job cost sheets.
1.- In process costing, costs are accumulated in processing departments rather than by job. II.- If all units go through all processing departments then the processing departments are arranged in a parallel rather than sequential fashion * Only statement Il is true O Both statements are true Both statements are false Only statement I is true
what is the labor-related activity cost pool per DLH what is the machine-related activity cost pool per MH what is the machine setups activity cost pool per seteup what is the production orders activity cost per order what is the product testing activity cost per test what is the packaging activity cost per package what is the general factory activity cost per DLH
Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have already been allocated to the company's three activity cost pools--Processing, Supervising, and Other. The costs in those activity cost pools appear below: Processing Supervising Other Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the other activity cost pool are not assigned to products. Activity data appear below: Product MO Product M5 Total $ 3,800 $ 23,800 $ 10,400 MHs (Processing) 9,700 300 10,000 Sales (total) Direct materials (total) Direct labor (total) Batches (Supervising) 500 500 1,000 Finally, sales and direct cost data are combined with Processing and Supervising costs to determine product margins. Product Mº $ 74,100 $ 28,500 $ 27,800 Product M5 $ 89,900 $ 31,400 $ 41,700
When a company implements activity-based costing, manufacturing overhead cost is often shifted from low volume products to high volume products, with a higher unit cost resulting for the high volume products. Please explain (True or False) thoroughly.
Process costing is an effective method to identify resource and logistics costs. Please respond to the following: Discuss the specific steps you would take to design a process costing system that effectively identifies resource and logistics costs of a manufactured product.
Which of the following is a characteristic of the process costing method? a. Work in process inventory is restated in terms of completed units b. Costs are accumulated by order c. It is used by companies manufacturing custom machineries d. Standard cost is not applicable
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs? a. number of sales employees Ob. number of products sold c. number of calls Od. square footage of the help desk office
Which costing method is likely to provide the most accurate product cost? a. Volume-based costing using direct labor hours to allocate overhead b. Volume-based costing using a plantwide overhead rate c. Normal costing using a plantwide overhead rate d. Activity-based costing
Activity-based costing (ABC) is a costing technique that uses a two-stage allocation process. Which of the following statements best describes these two stages? Multiple Choice Direct costs are allocated to the production departments based on a predetermined overhead rate. The costs are assigned to departments, and then to the products based upon their use of activity resources. The costs are assigned to activities, and then to the products based upon their use of the activities. Indirect costs are assigned to activities, and then to the products based upon the direct cost resources used by the activities.
Process costing is normally used when: Select one: a. large numbers of different products are manufactured. O b. the fixed costs of manufacturing exceed the variable cost of manufacturing. O c. large numbers of nearly identical products are manufactured. O d. small numbers of nearly identical products are manufactured.
An operations costing system: Multiple Choice O O assigns materials equally to each operation. assigns conversion costs equally to each operation. assigns conversion costs separately to jobs. assigns materials and conversion costs in the same manner.