1. Which of the following statements is correct concerning job-order costing? A.Job order costing whould be appropriate for a textbook publisher. B.All the cost appearing on a job cost sheet are actual costs. C.Indirect materials are charged to a specific job. D.Job order costing is mainly used in firms with homogeneous products such as oil refineries.
2. Job-order costing is used in manufacturing companies and process costing is used in service companies. True or False
3. A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing. True or False
4. Which of the following types of companies would typically use process costing rather than job-order costing? A.A small appliance repair shop. B.A manufacturer of commercial passenger aircraft. C.A specialty equipment manufacturer. D.A breakfast cereal manufacturer.