True / False Questions
78.Job-order and process cost systems are two different costing systems that a company chooses between based on the preference of management.
True False
79.Job-order cost systems are used by many service businesses; process cost systems are not applicable to service businesses.
True False
80.Job-order and process cost systems are used only in the United States.
True False
81.Both job-order and process costing require cost averaging procedures.
True False
82.The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.
True False
83.Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.
True False
84.In a job-order cost system, the inventory accounts generally are maintained on a perpetual basis.
True False
85.In a job-order cost system, each department has a work in process account.
True False
86.In a process cost system, costs are accumulated by department.
True False
87.In a process cost system, a transferred-in cost is the same thing as raw materials cost.
True False