Under what conditions would it be appropriate to use a process

Under what conditions would it be appropriate to use a process

costing system?

Process costing system can be used in industries that produce

essentially homogenous products on a continuous basis, such as bricks

and paper.

2. In what ways are job-order and process costing similar?

Job-order and process costing are similar in three ways that the book

declares. One, both systems have the same basic purposes- to assign

materials, labor, and overhead to products and to provide a mechanism

for computing unit product costs. Second, both systems use the same

basic manufacturing accounts, including Manufacturing Overhead, Raw

Materials, Work In Process, and Finished Goods. Third, the flow of

costs through the manufacturing accounts is basically the same in both

systems.

3. Costing are accumulated by job-order costing system; how are cost

accumulated in a process costing system?

Under process costing, costs are accumulated by department, rather

than by order, and assign these costs uniformly to all units that pass

through the department during a period.

4. What two essential features characterize any processing

department in a process costing system?

The first feature is the activity performed in the processing

department must be performed uniformly on all units passing through

it. The second feature is the output of the processing department must

be homogeneous.

5. Why is cost accumulation easier in a process costing department

in a job-order ...