cost acct test bank chapter 17.doc

Cost Accounting, 14e (Horngren/Datar/Rajan) Chapter 17 Process Costing Objective 17.1 1) Costing systems that are used for the costing of like or similar units of products in mass production are called: A) inventory-costing systems B) job-costing systems C) process-costing systems D) weighted-average costing systems Answer: C Diff: 1 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 2) Which of the following manufactured products would NOT use process costing? A) 747 jet aircraft B) 46-inch television sets C) Construction of a commercial office building D) Both A and C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 3) Process costing should be used to assign costs to products when the: A) units produced are similar B) units produced are dissimilar C) calculation of unit costs requires the averaging of unit costs over all units produced D) Either A or C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 4) Which one of the following statements is true? A) In a job-costing system, individual jobs use different quantities of production resources. B) In a process-costing system each unit uses approximately the same amount of resources. C) An averaging process is used to calculate unit costs in a job-costing system. D) Both A and B are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 5) Conversion costs: A) include all the factors of production B) include direct labor and overhead C) in process costing are usually considered to be added evenly throughout the production process D) Both B and C are correct. Answer: D Diff: 2 Terms: process-costing system Objective: 1 AACSB: Reflective thinking 6) An example of a business which would have no beginning or ending inventory but which could use process costing to compute unit costs would be a: A) clot