Cost Accounting and Control Quiz (3)

What is process costing primarily used for?

• Job order costing

• Mass production of homogeneous products

• Service industries

• Custom manufacturing

Which of the following is a characteristic of process costing?

• Production is continuous

• Only one department is involved

• Costs are recorded per job

• Each unit is distinguishable

In process costing, what does WIP stand for?

• Work in Profit

• Work in Progress

• Work in Process

• Work in Production

What is the first step in recording direct materials issued in process costing?

• Credit Work in Process

• Debit Work in Process

• Debit Raw Materials Inventory

• Credit Raw Materials Inventory

Which method combines beginning inventory and current production?

• Weighted Average Method

• Activity-Based Costing

• FIFO Method

• Backflush Costing

What does FIFO stand for in cost accounting?

• Final In, First Out

• First In, Final Out

• Final In, Final Out

• First In, First Out

What is the treatment for normal lost units in process costing?

• Recorded as a separate expense

• Charged to Loss from Abnormal Spoilage

• Included in cost per unit

• Ignored in calculations

What is the primary goal of a Just-In-Time (JIT) system?

• Maximize production time

• Eliminate inventory and streamline production

• Increase inventory levels

• Reduce labor costs

Which of the following is NOT a feature of JIT production?

• Manufacturing cells

• Multiskilled workers

• Large batch sizes

• Supplier coordination

What is backflush costing primarily used for?

• Just-In-Time production systems

• Job order costing

• Detailed tracking of costs

• Traditional costing methods