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| 1.
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Process manufacturing is the mass production of products in a sequence of steps. |
| | A) | True |
| | B) | False |
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| 2.
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In process manufacturing operations, each process is identified as a separate production department, workstation, or work centre. |
| | A) | True |
| | B) | False |
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| 3.
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The storeroom is where finished goods are stored before being shipped to customers. |
| | A) | True |
| | B) | False |
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| 4.
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A system of accounting in which the costs of each process are accumulated separately and then assigned to the units of product that pass through the process is known as a process cost accounting system. |
| | A) | True |
| | B) | False |
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| 5.
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Process cost accounting systems use the concepts of direct and indirect manufacturing costs. |
| | A) | True |
| | B) | False |
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| 6.
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When purchasing raw materials, the Raw Materials Purchases account is debited for the amount of the vendor's invoice. |
| | A) | True |
| | B) | False |
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| 7.
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The document that shows raw materials issued to a department during a period and substitutes for materials requisitions is called the process cost summary. |
| | A) | True |
| | B) | False |
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| 8.
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The wages and salaries of the manager and maintenance worker(s) of a production department in a process operation are charged to factory overhead as indirect costs. |
| | A) | True |
| | B) | False |
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| 9.
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When using a process cost accounting system, it is not necessary or practical to use a predetermined overhead rate as would be the case with job order accounting. |
| | A) | True |
| | B) | False |
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| 10.
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In a process cost accounting system, there is no overapplied or underapplied factory overhead because the actual overhead for each production department is charged directly to the individual departments. |
| | A) | True |
| | B) | False |
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| 11.
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If there is no beginning or ending goods in process inventory, it is not necessary to compute the equivalent units of production. |
| | A) | True |
| | B) | False |
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| 12.
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The notion that the cost of producing 300 units of product that are each 30% complete as to material, labour, and overhead is equal to the cost of producing and completing 90 units of product is supported by a concept known as 'equivalent units of production.' |
| | A) | True |
| | B) | False |
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| 13.
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The cost flow assumption used in the presentation of process cost accounting is FIFO; that is, units of product are accounted for on a first-in, first-out basis. |
| | A) | True |
| | B) | False |
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| 14.
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If the materials are applied in a production department only at the beginning of the process, the equivalent units for material will include only the units of material started and completed and the materials in the ending goods in process. |
| | A) | True |
| | B) | False |
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| 15.
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Very often, the equivalent units for labour are different than the equivalent units for factory overhead. |
| | A) | True |
| | B) | False |
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| 16.
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Units of product spoiled in process can have a negative impact on the cost assigned to equivalent units of production. |
| | A) | True |
| | B) | False |
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| 17.
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The procedures for overapplied or underapplied overhead are the same for both the process cost accounting system and the job order cost accounting system. |
| | A) | True |
| | B) | False |
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| 18.
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The transfer of a partially completed product from one department to another will reduce the total assets of the company. |
| | A) | True |
| | B) | False |
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| 19.
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Due to the medium standardization, services cannot be delivered by process operations. |
| | A) | True |
| | B) | False |
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