1. Blue Star Company has a different Work in Process account for each project under construction. Based on this information alone Blue Star is using a

a. process cost system.

b. hybrid cost system.

c. job order cost system.

d. standard cost system.

2. Which of the following statements is true with respect to a process cost system?

a. A process system is likely to be used in the shipbuilding industry.

b. A process system is used primarily in service companies.

c. A process system produces the unit cost of a product by specific identification.

d. A process system is appropriate to use when a company produces homogeneous, low cost products.

3. In a job-order costing system product costs for each individual job are accumulated on a

a. job cost sheet.

b. transfer-in cost report.

c. variance report.

d. All of the choices show titles that are used to describe the document that contain all of the product costs associated with each job in a job order cost system.

4. Two primary source documents, materials requisition forms and work tickets, provide the information that is recorded on the job cost sheet. This statement is true or false

5. Generally accepted managerial accounting principles require companies that use job order cost systems to close overapplied or underapplied overhead directly to the Cost of Goods Sold account at the end of each accounting period. This statement is true/ false