For each of the following products or services, indicate if the cost would most likely be determined using a job order costing system or a process costing system.
a. Soft drinks
b. Automobile repairs
c. Customized furniture
d. Aluminum foil
e. Lawn chairs
f. Chocolate candy bars
g. Hospital surgery
h. Pencils
S.No. | Particulars | Classification of costing system |
A | Soft drinks | Process costing system |
B | Automobile repairs | Job order costing system |
C | Customized furniture | Job order costing system |
D | Aluminium foil | Process costing system |
E | Lawn chairs | Process costing system |
F | Chocolate candy bars | Process costing system |
G | Hospital surgery | Job order costing system |
H | Pencils | Process costing system |
Job Order Cost Systems
MULTIPLE CHOICE
Which of the following are the two main types of cost accounting systems for manufacturing
operations?
a.
Process cost and general accounting systems
b.
Job order cost and process cost systems
c.
Job order and general accounting systems
d.
Process cost and replacement cost systems
ANS:
B
DIF: Easy
OBJ: 19-01
NAT: AACSB Analytic | IMA-Cost Management
2.
Which of the following would most likely use a job order costing system?
a.
A paper mill
b.
A swimming pool installer
c.
A company that manufactures chlorine for swimming pools
d.
An oil refinery
ANS:
B
DIF: Easy
OBJ: 19-01
NAT: AACSB Analytic | IMA-Cost Management
3.
Which of the following would be most likely to use process costing?
a.
A custom furniture manufacturer.
b.
An auto body repair shop.
c.
A law firm
d.
A lawn fertilizer manufacturer.
ANS:
D
DIF: Easy
OBJ: 19-01
NAT: AACSB Analytic | IMA-Cost Management
4.
Which of the following systems provides for a separate record of the cost of each particular quantity of
product that passes through the factory?
a.
Job order cost system
b.
General cost system
c.
Replacement cost system
d.
Process cost system
ANS:
A
DIF: Easy
OBJ: 19-01
NAT: AACSB Analytic | IMA-Cost Management
5.
For which of the following businesses would the job order cost system be appropriate?
a.
Meat processor
b.
Automobile manufacturer
c.
Oil refinery
d.
Construction contractor
ANS:
D
DIF: Difficult
OBJ: 19-01
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54. Which of the following would most likely use a job order costing system?
55. Which of the following would be most likely to use process costing? 56. Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory? 57. For which of the following businesses would the job order cost system be appropriate? 58. For which of the following businesses would the process cost system be appropriate? 59. Which of the following is nota characteristic of a job order costing system? 60. Which of the following products probably would be manufactured using a job order costing system? 61. Job order costing and process costing are 62. Which of the following is not true about why a service firm will use the job order costing system? 63. Which of the following costs are NOT included in finished goods inventory? 64. Which of the following is the correct flow of manufacturing costs? 65. Which of the following would record the labor costs to an individual job?
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