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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