Questions from Cost Accounting

Q: Give three examples of industries that use process-costing systems.

Give three examples of industries that use process-costing systems.

Q: Identify a major advantage of the FIFO method for purposes of planning

Identify a major advantage of the FIFO method for purposes of planning and control.

Q: Identify the main difference between journal entries in process costing and job

Identify the main difference between journal entries in process costing and job costing.

Q: “Transferred-in costs are those costs incurred in the preceding

“Transferred-in costs are those costs incurred in the preceding accounting period.” Do you agree? Explain.

Q: Name the three inventory methods commonly associated with process costing.

Name the three inventory methods commonly associated with process costing.

Q: Describe the distinctive characteristic of weighted-average computations in assigning costs

Describe the distinctive characteristic of weighted-average computations in assigning costs to units completed and to units in ending work in process.

Q: Why should the FIFO method be called a modified or department FIFO

Why should the FIFO method be called a modified or department FIFO method?

Q: Why is there an unmistakable trend in manufacturing to improve quality?

Why is there an unmistakable trend in manufacturing to improve quality?

Q: “The unit cost of normal spoilage is the same as the

“The unit cost of normal spoilage is the same as the unit cost of abnormal spoilage.” Do you agree? Explain.

Q: “The costs of rework are always charged to the specific jobs

“The costs of rework are always charged to the specific jobs in which the defects were originally discovered.” Do you agree? Explain.