Concept explainers
Indicate whether each of the following statements is true or false.
1. Many hospitals use
2. A manufacturer of computer flash drives would use a job order cost system.
3. A
4. A process cost system keeps track of costs on job cost sheets.
Compare job order and process cost systems. (LO 1).C
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- A process costing system Is most likely used by which of the following? airplane manufacturing a paper manufacturing company an accounting firm specializing in tax returns a hospitalarrow_forwardWhich of the following statements are true? 1. A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs. II. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources. III. An employee time ticket is an hour-by-hour summary of the employee's activities throughout the day.arrow_forwardA 1.Describe the differences between process costing and job 5.4 costing.2. Distinguish between normal and abnormal losses and explain.3. Provide examples of industries that use process costing. 4. Why is cost accumulation easier with a process costing system compared with a job costing system? 5. What are equivalent units? Why are they needed with a process costing system?arrow_forward
- A job order costing system is most likely used by which of the following?A. a pet food manufacturerB. a paper manufacturing companyC. an accounting firm specializing in tax returnsD. a stereo manufacturing companyarrow_forwardChapter 3 discusses job costing. Process costing was briefly discussed. Which company listed below would most likely use process costing. A. Engineering firm B. Law firm C. custom jewelry maker D. soda pop manufacturerarrow_forward
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