learning objective 17 1 1 accounting firms building contractors and healthcare provi 4311358

Learning Objective 17-1

1) Accounting firms, building contractors, and healthcare providers are companies that use job order costing.

2) Process costing is used by companies that produce large numbers of identical units in a continuous fashion.

3) Which of the following companies would NOT use job order costing?

A) A lawn maintenance company

B) A legal firm

C) An auto repair shop

D) A beverage manufacturer

4) Which of the following is an industry that would use a process costing system rather than a job order costing system?

A) Custom furniture manufacturer

B) Music production studio

C) Paint manufacturer

D) Home remodeling contractor

5) Job order costing is most likely used in which of the following industries?

A) Pharmaceutical manufacturing

B) Medical clinic

C) Oil refinery

D) Food and beverage manufacturing

6) Which of the following statements is FALSE?

A) A job order costing system would be used by manufacturers of custom made products.

B) A process costing system would be used by manufacturers of commodities, such as flour or sugar.

C) A service firm would likely use a job order costing system.

D) A print and copy shop would likely use a process costing system.

7) A process costing system is useful in which of the following circumstances?

A) Providing specialized services

B) Production of unique products

C) Production of multiple products in separate batches

D) Mass production of a single type of product

8) A job order costing system is useful in which of the following circumstances?

A) Mass production of a commodity

B) Manufacturing multiple products in separate batches

C) Continuous flow production of a single product

D) Manufacturing a product in a multi-step flow of production

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