A Process Cost System Would Be Used for All of the Following

question 191

Multiple Choice

A process cost system would be used for all of the following products except

• A) chemicals.
• B) computer chips.
• C) motion pictures.
• D) soft drinks.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost assigned to those overheads, indicating efficiency in managing variable costs.

Direct Materials Purchases Variance

the difference between the actual cost of direct materials purchased and the expected (or standard) cost, indicating how effectively a company is managing its resources.

Standard Labor-Hours

A pre-determined measure of the amount of labor time expected to complete a single unit of production or perform a task, often used in cost accounting.

Standard Amount

A benchmark or norm for measuring performance, often used in budgeting and accounting to set expected costs or outputs.