Ads 468x60px

What is the primary objective in process costing? And Many more..

1. What is the primary objective in process costing?

2. A firm has a choice of using either a job order or process cost system. Discuss the relative merits of each.

3. What are the distinguishing features of a process cost system?

4. For the following products indicate whether a job order or a process cost system would be required:
a. Gasoline e. Dacron yam
b. Sewing machines f. Cigarettes
c. Chocolate syrup g. Space capsules
d. Textbooks h. Men's suits

5. State and discuss three product flow formats.

6. Compare the cost accumulation and summarizing procedures of a job order cost system and a process cost system.

7. Can predetermined overhead rates be used in a process cost system?

8. Would one expect to find service departments in a firm using a process cost system? If so, how would they be handled? Would cost of production reports be used for service departments?

9. What is the purpose of a cost of production report?

10. What are the various sections of a cost of production report? How are they used?

11. Separate cost of production reports are prepared for each production department. Why is this method used in preference to one report for the entire firm?

12. Are month-to-month fluctuations in average unit costs computed in a cost of production report meaningful data in attempting to control costs?13. What is equivalent production? Explain in terms of its effect on computed unit costs.

Related Posts Plugin for WordPress, Blogger...