The Main Difference Between Job Order and Process Costing Systems

question 92

Multiple Choice

The main difference between job order and process costing systems is that

• A) one accumulates costs by materials issued and the other by labor incurred.
• B) one accumulates costs by individual jobs and the other by particular processes.
• C) one emphasizes costs accumulated in completed products and the other emphasizes costs associated with work-in-process.
• D) one emphasizes costs adding value to the product and the other emphasizes costs incurred because of waste, scrap, and obsolescence.

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Definitions:

Independent Variables

Variables in an experiment or model that are controlled or changed to test their effects on dependent variables.

Observed Values

The actual values that are measured or collected during an experiment or survey.

Predicted Values

In statistics, these are the estimated outcomes based on a regression model or other predictive model.

Coefficient of Determination

A statistical measure represented by R² that assesses the extent of variance in a dependent variable that is predictable from the independent variable(s).