1. Process costing is normally used when:

a. large numbers of different products are manufactured

b. large numbers of nearly identical products are manufactured

c. small numbers of nearly identical products are manufactured

d. the fixed costs of manufacturing exceed the variable cost of manufacturing

2. Manufacturing overhead:

a. consists of direct material and direct labour costs

b. is easily traced to jobs

c. should not be assigned to individual jobs because it bears no obvious relationship to them

d. is a heterogeneous pool of indirect production costs that can include gas and electricity costs and depreciation