Which of the Following Is a Difference Between Job Order

question 9

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 product costs in each production department and allocate the costs evenly across all units produced in the department during the period while companies that use job order costing accumulate product costs by job and allocate those costs only to the units in that particular job.
• C)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.
• D)A process costing system would be appropriate for a company that manufactures custom solar panels while a job order costing system would be appropriate for a company which manufactures a line of solar panels.

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Definitions:

Flexibility

The ability of an organization or individual to adapt to changes, challenges, or new requirements in their environment.

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A set of management practices that are aimed at enhancing an organization's performance by improving employee involvement and commitment.

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Quality Circles

Small groups of employees who meet regularly to discuss and propose solutions to workplace problems, aiming to improve organizational performance and work environment.