Asked by Brandon Pimentel on May 20, 2024
Verified
Which of the following are the two main types of cost accounting systems for manufacturing operations?
A) process cost and general accounting systems
B) job order cost and process cost systems
C) job order and general accounting systems
D) process cost and replacement cost systems
Cost Accounting Systems
Methods used by businesses to track, record, and analyze costs associated with the products or services they provide.
Job Order Cost
The cost calculated for a specific customer order, taking into account direct labor, direct materials, and allocated overhead.
Process Cost Systems
Accounting systems used to apply costs to similar products that are mass-produced in a continuous fashion.
- Compare and contrast job order costing with process costing, including the scenarios where each is most applicable.
Verified Answer
CS
ceecee smithMay 25, 2024
Final Answer :
B
Explanation :
The two main types of cost accounting systems for manufacturing operations are job order cost and process cost systems. Job order cost systems assign costs to specific jobs or batches of products, while process cost systems average costs over large numbers of identical units produced through a continuous process. Option A (process cost and general accounting systems) and C (job order and general accounting systems) are incorrect because they do not include both main types of cost accounting systems for manufacturing operations. Option D (process cost and replacement cost systems) is incorrect because replacement cost is not a type of cost accounting system for manufacturing operations.
Learning Objectives
- Compare and contrast job order costing with process costing, including the scenarios where each is most applicable.