Which of the Following Is Not a Difference in a Job-Cost

question 2

Multiple Choice

Which of the following is not a difference in a job-cost environment and a process-cost environment?

• A)In a job-cost environment, only physical units are computed whereas in a process cost environment, equivalent units are computed.
• B)In a job-cost environment, firms compute a predetermined rate for overhead costs alone as these are the only costs that the firm allocates whereas in a process cost environment a firm must also allocate the cost of materials and conversion.
• C)A job-cost environment is appropriate for firms that produce customized products in small amounts whereas a process-cost environment is suitable in settings that involve mass production of like products.
• D)In a job-cost environment, costs are assigned only to finished goods and cost of goods sold whereas in a process-cost environment costs are assigned to work-in-process, finished goods, and cost of goods sold.
• E)All of the above are differences in a job-cost environment and a process-cost environment.

---

Definitions:

Organic Compound

An organic compound is a chemical compound containing carbon atoms bonded together in chains or rings along with other elements such as hydrogen, oxygen, and nitrogen, among others.

Triacylglycerols

Lipid molecules made up of three fatty acids linked to a glycerol molecule, commonly known as triglycerides and stored in fat cells as energy reserves.

Structural Component

A fundamental part or element of something that contributes to its construction or organization, essential for stability and function.

Plant Cells

Basic units of life in plants, typically having a cell wall, chloroplasts, and a central vacuole.