Which of the Following Is a Difference Between Job Order

question 70

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 mass-produce identical products while companies that use a job order costing system produce many different types of products.
• B)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.
• C)Companies that use a process costing system accumulate direct material and manufacturing overhead,but not direct labor while companies that use a job order costing systems accumulate direct material,direct labor and manufacturing overhead.
• D)Companies that use a job order costing system do not accumulate manufacturing overhead as part of the cost of production while companies that use a process costing system do include manufacturing overhead in product cost.

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Definitions:

Industry Consolidation

The process by which fewer companies control a greater share of the industry, often leading to reduced competition.

Upward Wage Pressures

The factors that cause the costs of labor in the market to increase.

Supply-Side Economist

An economist who believes that reducing tax rates and deregulation will stimulate economic growth by incentivizing individuals and businesses to produce goods and services.

Money Supply

The aggregate sum of financial assets present within an economy at a certain moment, encompassing cash, coins, and the amounts in checking and savings accounts.