BAC1824 Process Costing

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature.

• True

• False

In a process cost system, total costs are determined at the end of a month or year.

• True

• False

Equivalent units of production are used to determine the cost per unit of completed products.

• True

• False

One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job.

• True

• False

A process cost system would be used for all of the following products except

• chemicals.

• computer chips.

• motion pictures.

• soft drinks.

Differences between a job order cost system and a process cost system include all of the following except the

• documents used to track costs.

• point at which costs are totaled.

• unit cost computations.

• flow of costs.

In a process cost system, a production cost report is prepared

• only for the first processing department.

• for all departments in the aggregate.

• for each processing department.

• only for the last processing department.