Question

9. Product costs differ from period expenses because a. period expenses are not considered part of operating expenses for a manufacturing company b. period expenses reduce reported income whereas product costs do not c. product costs may appear on the balance sheet as assets d. product costs are expenses for manufacturing companies and period expenses are expenses for service organizations.

10. Which of the following is not a characteristic of job-order costing? a. Wide variety of distinct products b. Unit cost is computed by dividing process costs of the period by the units produced in the period c. Unit cost computed by dividing total job costs by units produced on that job d. Costs accumulated by job e. Typically, the cost of one job is different from that of another job

Answer 1

Answer 9

Correct option is C.

Product costs may appear on the balance sheet as assets.

Product costs differ from period expenses because product costs may appear on the balance sheet as assets. Product cost of inventory should be reported as assets until the inventory not sold.

Answer 10

Correct option is B.

Unit cost is computed by dividing process costs of the period by the units produced in the period.

Wide variety of distinct products, Unit cost computed by dividing total job costs by units produced on that job, Costs accumulated by the job, the cost of one job is different from that of another job are characteristics of job-order costing. It means unit cost is computed by dividing process costs of the period by the units produced in the period not considered as characteristic of job-order costing.