<question> Process and job order manufacturing operations both combine materials, labor, and overhead items in the

process of producing products.

True or False. </question> True.

<question> A system of accounting in which the costs of each process are accumulated and then assigned to the units of product that passed through the process is a:

A) General cost accounting system. B) Job order cost accounting system. C) Goods in process accounting system. D) Manufacturing cost accounting system. E) Process cost accounting system. </question> E) Process cost accounting system.

<question> A process cost summary includes the amounts of equivalent units of production for the period.

True or False. </question> True.

<question> Process manufacturing usually reflects a manufacturer that produces large quantities of identical products.

True or False. </question> True.

<question> A process cost summary for a production department accounts for all costs assigned to that department during the period plus costs that were in the department's Goods in Process Inventory account at the beginning of the period.

True or False. </question> True.

<question> A measure of the productivity of a process with respect to its use of direct materials, direct labor, or overhead, and an expression of the activity of a process as the number of units that would have been processed during a period if all effort had been applied to units that were started and finished during the period, is called:

A) Units in process. B) Manufacturing overhead. C) Equivalent units of production. D) Process cost summary.

E) A job cost sheet. </question> C) Equivalent units of production.

<question> An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:

A) Production department. B) Primary department. C) Control department. D) Service department. E) Responsibility department. </question> A) Production department.

<question> The FIFO method separates prior period costs from costs incurred during the current period.

True or False. </question> True.

<question> In a process cost accounting system, with the exception of the first department, each department receives output from the prior department as a partially processed product.

True or False. </question> True.

<question> When defining direct costs and indirect costs in process costing, it is the process that is the cost object.

True or False. </question> True.

<question> A hybrid costing system would be most appropriate when:

A) A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs. B) Large quantities of identical products are being produced. C) The volume of production is low and costs are high. D) There is no standardization of units of production. E) All of these would necessitate a hybrid costing system. </question> A) A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.

<question>

Equivalent units of production refer to the number of units that would be completed if all effort during a period had been applied only to those units that were started and completed in a period.

True or False. </question> True.

<question> A process cost summary is an accounting report that describes the costs charged to a department, the equivalent units of production by the department, and how the costs were assigned to the output.

True or False. </question> True.

<question> Process cost accounting systems are commonly used by companies that produce a large volume of standardized units on a continuous basis.

True or False. </question> True.

<question> Hybrid systems contain aspects of both process and job order operations.

True or False. </question> True.

<question> One section of the process cost summary describes the equivalent units of production for the department during the reporting period and presents the calculations of the costs per equivalent unit.

True or False. </question> True.

<question> The cost of units transferred from Goods in Process Inventory to Finished Goods Inventory is called the cost of goods manufactured.

True or False. </question> True.

<question> A materials consumption report is a source document that summarizes the materials used during a reporting period.

True or False. </question>

True.

<question> When defining direct costs and indirect costs in process costing, it is the process that is the cost object.

True or False. </question> True.

<question> The managers of process manufacturing systems focus on the series of processes needed to complete the production of products.

True or False. </question> True.

<question> Process and job order manufacturing operations both combine materials, labor, and overhead items in the process of producing products.

True or False. </question> True.

<question>

The process cost summary is an important managerial accounting report produced by a process cost accounting system.

True or False. </question> True.