Question

What types of costs are normally found in a process accounting system?

a.materials and labor

b.overhead, selling and administrative

c.labor and overhead

d.materials, labor and overhead

Which of the following companies would be least likely to use a process costing system?

a.a home-builder

b.a fertilizer company

c.a chemical company

d.an oil refinery

Manufacturers that produce a large number of homogeneous products are most likely to use which of the following?

a.parallel costing

b.job-order costing

c.process costing

d.sequential costing

The production report

a.provides information about the manufacturing costs incurred by the department.

b.provides information about the physical units processed by the department.

c.is a subsidiary to the work in process account.

d.All of these choices are correct.

Answer 1

Answers :

1) d) Materials, Labour and OVerheads.

cost normally found in the process costing is the material, labor and overheads

2) a) Home Builder

Homebuilder Don't like to take the process accounting system for the accounting their costs.

3) C) Process Costing

Production units producing a large number of homogenous products like to take the process costing for costing purpose

4) D) All of these choices are Correct

the Production Report is a subsidiary to work in process account to provide information about the manufacturing cost and physical units produced