Which of the following production characteristics is better suited for process costing and not job order costing ? Each product batch is distinguishable from the prior batch. The costs are easily traced to a specific product. Costs are accumulated by department. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

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Answer 1

Textbook Question

Chapter 5, Problem 1MC

Which of the following production characteristics is better suited for process costing and not job order costing?

Each product batch is distinguishable from the prior batch.
The costs are easily traced to a specific product.
Costs are accumulated by department.
The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

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Calm Ltd has the following data relating tò two investment projects, only one of which mayb e s e l e c t e d :The cost of capital is 10 per cent, and depreciation is calculated using straight line method.a . Calculate for each of the project:i. Average annual accounting rate of return on average capital investedi i . Net Present Valuei l l . I n t e r n a l R a t e o f Returnb. Discuss the relative merits of the methods of evaluation mentioned above in (a).Q.4a . In the context of process costing, discuss the following concepts briefly, i . Equivalent unitsNormal lossill. Abnormal lossi v. Joint productsV . By productsb . Discuss the different types of standard costing and objectives of standard costing.

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Answer 2

Textbook Question

Chapter 5, Problem 1MC

Which of the following production characteristics is better suited for process costing and not job order costing?

Each product batch is distinguishable from the prior batch.
The costs are easily traced to a specific product.
Costs are accumulated by department.
The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

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Answer 3

Textbook Question

Chapter 5, Problem 1MC

Which of the following production characteristics is better suited for process costing and not job order costing?

Each product batch is distinguishable from the prior batch.
The costs are easily traced to a specific product.
Costs are accumulated by department.
The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

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Answer 4

Textbook Question

Chapter 5, Problem 1MC

Which of the following production characteristics is better suited for process costing and not job order costing?

Each product batch is distinguishable from the prior batch.
The costs are easily traced to a specific product.
Costs are accumulated by department.
The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

Answer 8

Expert Solution & Answer

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer to Problem 1MC

C. Costs are accumulated by department

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

Concept introduction:

Job order costing:

Job order costing is applied to the businesses which manufactured the product or provide the services according to the client’s order. As its names suggest, Job order costing is costing done for a particular job.

Process Costing System:

As its name suggests, process costing system is the branch of cost accounting which is applied where production of a product takes more than one processes to complete for example the production of shoes from leather goes through cutting, stitching and policing processes.

To choose:

The characteristic which is better suited for process costing and not job order costing

Answer 12

Answer to Problem 1MC

C. Costs are accumulated by department

Answer 13

Explanation of Solution

Explanation for correct answer:

If costs are accumulated by a department, then the Process costing is most suitable option. Hence the correct option is C.

Explanation for incorrect answers:

A. In case of distinguishable product batch production, the job order costing is most suitable. Hence this option is incorrect.

B. If costs are easily traced to a specificproduct; the job order costing is most suitable option. Hence this option is incorrect.

D. If costs are allocated to jobs, the job order costing is most suitable option. Hence this option is incorrect.

Answer 14

Ch. 5 - Which of the following production characteristics...Ch. 5 - A process costing system Is most likely used by...Ch. 5 - Which of the following is a prime cost? A. direct...Ch. 5 - Which of the following is a conversion cost? A....Ch. 5 - During production, how are the costs in process...Ch. 5 - Which is nor needed to compute equivalent units of...Ch. 5 - What is the cost of direct labor f the conversion...Ch. 5 - What is the conversion cost to manufacture...Ch. 5 - Which of the following lists contains only...Ch. 5 - Direct material costs $3 per unit, direct labor...

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Answer to Problem 1MC

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