A Major Difference Between Process Costing and Job-Order Costing Is

question 35

Multiple Choice

A major difference between process costing and job-order costing is

• A)costs are easy to trace to specific jobs in a job-order system but impossible to trace to products in a process costing system.
• B)costing of material components is more sensitive to materials purchased in a process costing system.
• C)process costing has fewer overall purchase requisitions than in a job-order costing system.
• D)controls over material acquisitions is generally not as stringent in a process costing system.

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Definitions:

Workers Paid

Compensation provided to employees in exchange for their labor or services, which can be in the form of wages, salaries, or benefits.

Supply of Labor

The total amount of labor that workers are willing and able to offer at various wage rates in a given time period.

Wage Rate

The amount of compensation a worker receives per unit of time or per unit of output.

MRP

Material Requirements Planning is a system for planning production schedules and inventory needs.