Question 21

1. Manufacturing and service firms producing unique products or services require process-costing accounting systems.

   	a.	True
   	b.	False

1 points

Question 22

1. The difference between actual overhead and applied overhead is the overhead variance.

   	a.	True
   	b.	False

1 points

Question 23

1. If actual overhead is greater than applied overhead, the variance is called overapplied overhead.

   	a.	True
   	b.	False

1 points

Question 24

1. The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

   	a.	True
   	b.	False

1 points

Question 25

1. Production costs consist only of direct materials and direct labor.

   	a.	True
   	b.	False

1 points

Question 26

1. The work-in-process account consists of all the job-order costs sheets for the unfinished jobs.

   	a.	True
   	b.	False

1 points

Question 27

1. The three manufacturing cost elements are direct materials, direct labor, and overhead.

   	a.	True
   	b.	False

1 points

Question 28

1. Actual overhead is reconciled with applied overhead at the end of the period.

   	a.	True
   	b.	False

1 points

Question 29

1. Overhead costs are assigned to Work-in-Process using a predetermined rate.

   	a.	True
   	b.	False

1 points

Question 30

1. Processing costing accumulates costs by processing departments rather than by individual jobs.

   	a.	True
   	b.	False

1 points

Question 31

1. Process costing is not appropriate for companies providing services.

   	a.	True
   	b.	False

1 points

Question 32

1. The FIFO method is one of the methods used to calculate equivalent units in process costing.

   	a.	True
   	b.	False

1 points

Question 33

1. Large manufacturing plants, such as chemical, food, and tire manufacturers, use process costing.

   	a.	True
   	b.	False

1 points

Question 34

1. In process costing, each producing department has its own work-in-process account.

   	a.	True
   	b.	False

1 points

Question 35

1. Firms that engage in service production do not have work-in-process inventories.

   	a.	True
   	b.	False

1 points

Question 36

1. Equivalent units of output are the complete units that could have been produced given the total amount of manufacturing effort expended for the period under consideration.

   	a.	True
   	b.	False

1 points

Question 37

1. Process-costing systems are specifically designed to support costing of homogeneous products that are mass-produced

   	a.	True
   	b.	False

1 points

Question 38

1. To calculate the equivalent units of production, the number of physical units is multiplied by the percentage of completion.

   	a.	True
   	b.	False