1) Process costing is typically used for businesses that make unique goods in relatively
small amounts.
Answer: FALSE
Diff: 1
LO: 5-1
EOC:
... [Show More] S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
2) Cost for direct materials, direct labor and manufacturing overhead are assigned to each
job.
Answer: FALSE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
3) A separate work in process inventory account is maintained for each process.
Answer: TRUE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
4) Unique or custom-made goods use a process costing system.
Answer: FALSE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
5) Both process costing and job costing assign costs to units as they proceed through the
process.
Answer: TRUE
Diff: 2
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing. Describe a job order cost system and calculate the predetermined
overhead rate and allocate indirect costs
ACCT2302 Managerial Accounting 3rd Edition Braun/Tiez
Chapter 5 With Updated Answers 2023-2024 Version
6) Each manufacturing process will have a WIP inventory account.
Answer: TRUE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
7) In a job cost system, all costs flow to a particular job.
Answer: TRUE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Describe a job order cost system and calculate the predetermined
overhead rate and allocate indirect costs
8) Prime costs include direct labor and direct materials.
Answer: TRUE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
9) Conversion costs are the sum of direct labor and direct materials.
Answer: FALSE
Diff: 2
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
10) Indirect labor would not be a component of conversion costs.
Answer: FALSE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
ACCT2302 Managerial Accounting 3rd Edition Braun/Tiez
Chapter 5 With Updated Answers 2023-2024 Version
11) In process costing, the costs flow from Raw Materials Inventory, to Work in Process
Inventory, to Finished Goods Inventory.
Answer: TRUE
Diff: 1
LO: 5-1
EOC: S5-1
AACSB: Reflective Thinking
Learning Outcome: Discuss process costing systems and calculate product cost using
process costing
12) To simplify the accounting, the journal entry to record the transfer of costs from one
WIP account to the next WIP account is generally made once a month to reflect all physical
transfers that occurred during the month.
Answer: TRUE
Diff: 2
LO: 5-1
EOC: E5-23
AACSB: Reflective Thinking [Show Less]