Which of the Following Is a Difference Between Job Order

question 5

Multiple Choice

Which of the following is a difference between job order costing and process costing systems?

• A)Companies that use a process costing system accumulate product costs throughout the production process while companies that use a job order costing system accumulate product cost only at the end of the production process.
• B)Companies that use a process costing system accumulate direct material and direct labor,but not manufacturing overhead while companies that use a job order costing systems accumulate direct material,direct labor and manufacturing overhead.
• C)Companies that use a process costing system accumulate product costs on the departmental production report while companies that use a job order costing system accumulate product costs on the job cost sheet.
• D)All of these ans choices are differences between process costing and job order costing systems.

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Definitions:

Manufacturing Departments

Specific areas within a manufacturing facility where distinct stages of production are carried out.

Predetermined Overhead Rates

Rates used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.

Direct Labor-Hours

The sum of hours contributed by workers directly participating in the creation of a product or the execution of a service.

Variable Manufacturing Overhead

Costs in manufacturing that vary directly with the level of production output, such as utilities and raw materials.