Which of the following costing methods is used for manufacturing unique products?
A) Job costing
B) Batch costing
C) Process costing
D) Standard costing
In which costing method are costs accumulated by batch?
A) Job costing
B) Batch costing
C) Process costing
D) Direct costing
Which costing method is suitable for continuous production of identical units?
A) Job costing
B) Batch costing
C) Process costing
D) Variable costing
What is the key feature of job costing?
A) Costs are assigned to individual units of production
B) Costs are assigned to large batches
C) Costs are averaged over the entire production process
D) Costs are assigned to processes
Which of the following is a characteristic of process costing?
A) Job order is unique and customized
B) It accumulates costs for continuous production processes
C) Costs are assigned to batches of products
D) It uses a single rate for all jobs
In which of the following costing methods are overheads applied on a job-by-job basis?
A) Job costing
B) Batch costing
C) Process costing
D) Absorption costing
Batch costing is commonly used in industries such as:
A) Steel manufacturing
B) Automobile manufacturing
C) Textiles and electronics
D) Food processing
In job costing, the direct labor cost is charged:
A) To a batch of products
B) To a specific job or order
C) To a production process
D) To general overhead
Process costing is typically used in industries where:
A) Products are highly customized
B) Products are mass-produced and homogeneous
C) Products are produced in small quantities
D) Products are ordered on a job basis
In job costing, costs are accumulated:
A) For each individual unit or job
B) Across departments
C) By process
D) In batches
Which of the following is an advantage of batch costing over job costing?
A) More accurate cost tracking
B) Less flexibility in production
C) Lower production costs per unit
D) Higher overheads per batch
In process costing, the cost of goods produced is transferred to:
A) Finished goods inventory
B) Work-in-process inventory
C) Direct labor accounts
D) Finished products account
Job costing is best suited for:
A) Mass production of identical products
B) Large-scale continuous processes
C) Production of specialized or custom products
D) Manufacturing low-cost standard products
Which of the following is true about batch costing?
A) Costs are assigned to individual items
B) It is used in industries that produce identical products in batches
C) It is only suitable for large quantities of identical goods
D) It involves continuous production processes
Which costing method requires the calculation of unit cost by dividing total costs by the number of units in a batch?
A) Job costing
B) Batch costing
C) Process costing
D) Standard costing
The cost of raw materials in job costing is:
A) Charged to a specific job or order
B) Allocated based on a fixed rate
C) Spread evenly across all jobs
D) Treated as overhead costs
Which of the following is not typically associated with process costing?
A) Mass production of identical products
B) Division of production into distinct processes
C) Assignment of costs to specific jobs or batches
D) Use of production stages
In batch costing, the unit cost is calculated by:
A) Adding the direct labor cost to overhead
B) Dividing total costs by the number of jobs
C) Dividing total costs by the number of units in the batch
D) Adding materials cost to direct labor
Which of the following is a disadvantage of process costing?
A) It is not suitable for custom-made products
B) It involves a high level of manual intervention
C) It leads to over-costing for mass-produced goods
D) It is complex and requires advanced software
Batch costing allows for:
A) Easy allocation of overhead costs to specific jobs
B) Assignment of a single cost to each item in a batch
C) Efficient costing of products manufactured in batches
D) Individual cost tracking for every unit
In process costing, the cost per unit is:
A) Assigned to specific products only
B) The total cost divided by the number of units produced in a period
C) Based on the number of jobs processed
D) Allocated to batch production
Which of the following is a characteristic of job costing?
A) Production is continuous and identical
B) It is used for mass production of standardized products
C) It assigns costs to specific jobs or orders
D) It uses the average cost method
In job costing, the cost of labor is:
A) Divided across the entire batch
B) Charged directly to the specific job
C) Allocated evenly among all units produced
D) Only recorded in the general ledger
What is the main purpose of process costing?
A) To assign costs to individual units of production
B) To allocate costs to a series of continuous processes
C) To determine the selling price of products
D) To calculate overhead expenses
Which of the following costing methods is most appropriate for companies producing large quantities of the same product?
A) Job costing
B) Batch costing
C) Process costing
D) Direct costing
Which cost element is common in both job costing and batch costing?
A) Direct materials
B) Indirect labor
C) Direct labor
D) All of the above
In batch costing, the overhead costs are:
A) Allocated to individual units
B) Spread across all products in the batch
C) Applied to the entire production process
D) Not included in the costing
Job costing is typically used by businesses that:
A) Mass-produce identical products
B) Customize products for specific customer orders
C) Process raw materials into finished goods
D) Produce goods in a continuous flow
In process costing, direct materials costs are assigned to:
A) A specific job
B) A specific batch
C) A specific process or department
D) Finished goods only
The calculation of unit cost in process costing involves:
A) Adding up all costs and dividing by the number of units produced
B) Only considering direct labor costs
C) Dividing overheads by the number of jobs
D) Only using direct material costs
