A Process Costing System Differs from a Job Order Costing

question 2

Multiple Choice

A process costing system differs from a job order costing system in that:

• A)There is no need for overhead application rates in process costing systems.
• B)Process costing systems are used primarily in service industries,whereas job order costing systems are used in manufacturing operations.
• C)Per-unit costs are not computed in process costing systems.
• D)Process costing systems are used when production involves large volumes of standardized products,whereas job order costing systems are used when each job or batch of products is uniquely different.

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