Answer the following statements true (T) or false (F)
1. Process costing systems are commonly used by companies that produce a large volume of standardized units on a continuous basis.
2. The term "process costing system" is used in reference to the number of trained individuals and computers required to process the collected cost information.
3. Process costing typically uses only one Work in Process Inventory account, while job order costing typically uses a separate Work in Process Inventory account for each department.
4. A production department is an organizational unit that has the responsibility for the complete processing of one particular product.
5. In a process costing system, with the exception of the first department, each department receives output from the prior department as a partially processed product.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5.
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Which of the following statements is true?
A. If a company retains profits instead of paying dividends, the price of their stock is expected to rise. B. Investors need not pay taxes on dividend earnings. C. Dividend earnings are legally not allowed to be invested and can only be used for consumption. D. The annual dividend yield on a stock is always greater than the annual capital-gains yield on the same stock.
To compare the value of amounts received at different times in the future, dollar amounts
A) may be restated to their present value through discounting or restated to their future value by compounding. B) must be converted to a single sum. C) must be restated to their future value by adding the compound interest to date. D) must be restated to their present value by removing the interest from the amount to be received in the future.
List five risks associated with IT outsourcing
Which of the following is considered a nonadmitted asset for an insurer?
A) cash B) preferred stocks C) real estate D) office furniture