PROCESS COSTING QUIZ

1. What is a key characteristic of products in industries using process costing?

• A. Each product is unique and customized

• B. Products are produced in small batches

• C. Products are homogeneous and mass-produced

• D. Production is based on specific customer orders

2. Which of the following industries would most likely use process costing?

• A. Custom software development

• B. Shipbuilding

• C. Textile manufacturing

• D. Event management

3.Which of the following is NOT a feature of process costing?

• A. Continuous production

• B. Homogeneous products

• C. Cost accumulation by job

• D. Use of equivalent units

4.How are costs typically accumulated in a process costing system?

• A. By individual jobs

• B. By customer orders

• C. By processes or departments

• D. By sales regions

5.What is the term for partially completed units at the end of an accounting period?

• A. Finished goods

• B. Work-in-progress (WIP)

• C. Raw materials

• D. Overhead inventory

6.Which of the following is a key difference between job costing and process costing?

• A. Job costing averages costs over all units; process costing assigns costs to specific jobs

• B. Job costing is used for mass production; process costing is for customized orders

• C. Job costing assigns costs to specific jobs; process costing averages costs over units produced

• D. There is no difference between the two methods