Cost Accounting Quiz

Cost accounting is primarily concerned with accumulating information about product costs.

• True

• False

A job order cost system is most appropriate when a large volume of uniform products is produced.

• True

• False

A process cost system is appropriate for similar products that are continuously mass produced.

• True

• False

The perpetual inventory method cannot be used in a job order cost system.

• True

• False

A job order cost system and a process cost system are two alternative methods for accumulating product costs.

• True

• False

A job order cost system identifies costs with a particular job rather than with a set time period.

• True

• False

A company may use either a job order cost system or a process cost system, but not both.

• True

• False

Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control accounts in the general ledger when a job order cost accounting system is used.

• True

• False

Accumulating and assigning manufacturing costs are two important activities in a job order cost system.

• True

• False

Recording the acquisition cost of raw materials is a part of accumulating manufacturing costs.

• True

• False