Ch. 18

Question 1

the cost object is a unit
or multiple units of a distinct
product or service which we
call a job. each job generally uses
different amounts of resources

Answer 1

job costing system

Question 2

the cost object includes masses of
identical or similar units of a product
or service. therefore _____ costing calculates
an average production cost for all units produced

Answer 2

process costing system

Question 3

(which costing is this)
- ______ costing is a system where the
unit cost of a product or service is obtained
by assigning total costs to many identical or similar units of output
- each unit receives the same or similar
amounts of direct materials costs, direct
manufacturing labor costs, and indirect manufacturing costs

Answer 3

process costing

Question 4

____ costing system seperate costs into
cost categories according to when costs
are introduced into the process

Answer 4

process costing system

Question 5

1. summarize the flow of physical units of output
2. compute output in terms of equivalent units
3. summarize total costs to account for
4. compute cost per equivalent unit
5. assign total costs to units completed (FG)
   and to units in ending work in process

Answer 5

5 step process cosint allocation

Question 6

an approximated amount of output units
that convert the quantity of input used into
the amount of equivalent completed output
units that could have been produced with the quantity of input

Answer 6

equivalents units
(calculated seperately for each input)