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.

---

Definitions:

Compound Rate

The rate at which interest is earned on both the initial principal and the accumulated interest from previous periods.

Savings Account

An account in a bank or financial institution where the main amount is safe and earns a small amount of interest.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.

Future Value

The value of an investment at a specified point in the future, accounting for factors like interest rates and compounding.