Multiple Choice Answers

A process cost accounting system is most appropriate when
A. similar products are mass-produced.
B. individual products are custom made to the specification of customers
C. the focus of attention is on a particular job or order.
D. a variety of different products are produced, each one requiring different types of materials, labor, and overhead.

Joint costs are incurred _____.
A. after the split-off point but before the process-further decision
B. after the process-further decision
C. before individual products are separately identified
D. before the production process is started

In a process cost system,
A. a Work in Process account is maintained for each process.
B. one Work in Process account is maintained for all the processes, similar to a job order cost system.
C. a materials requisition must identify the job on which the materials will be used.
D. a Work in Process account is maintained for each product.

A well-designed activity-based costing system starts with
A. assigning manufacturing overhead costs for each activity cost pool to products.
B. analyzing the activities performed to manufacture a product.
C. computing the activity-based overhead rate.
D. identifying the activity-cost pools.