Reference no: EM132585540

Question 1: Process costing is used to account for:

A. large numbers of identical products that are produced in a continuous manufacturing environment.

B. small numbers of products that are produced in batches.

C. raw materials that are converted directly to finished goods.

D. finished goods that are refined and processed further.

E. large numbers of products that are produced in a non-repetitive process.

Question 2: Which of the following manufacturers would most likely not use a process-cost accounting system?

A. A producer of computer monitors.

B. A paint manufacturer.

C. A producer of frozen orange juice.

D. A builder of customized yachts.

E. A lumber mill.

Question 3: Process costing would be used in all of the following industries except:

A. petroleum refining.

B. chemicals.

C. truck tire manufacturing.

D. wood pulp production.

E. automobile repair.

Question 4: Which of the following statements regarding similarities between process costing and job-order costing are true?

I. Both systems assign production costs to units of output.

II. Both systems require extensive knowledge of financial accounting.

III. The flow of costs through the manufacturing accounts is essentially the same.

A. I only.

B. I and III.

C. II and III.

D. III only.

E. I, II, and III.