Which of the Following Accurately Describes a Difference Between Job

question 58

Multiple Choice

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

• A) In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
• B) Job order costing systems do not need to assign costs to production, whereas process costing systems do.
• C) In job order costing systems, costs are traced to products, whereas in process costing systems, costs are traced to processes, departments and work cells.
• D) Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems.

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