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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Definitions:

Chi-Squared Distribution

A probability distribution that arises in statistics as the distribution of the sum of the squares of k independent standard normal random variables.

Variance

A statistical measure of the dispersion of a set of data points in relation to their mean.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and dividing by the count of numbers.

Variance

A measure of the dispersion or spread of a set of data points around their mean value.