BEC Question

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    Topic
  • January 25, 2014 at 8:45 pm #183207
    Topsya
    Member

    Three commonly employed systems for product costing are job order costing, operations costing, and process costing. Match the type of production environment with the costing method used.

    Job order costing Operations costing Process costing

    A. Auto repair Clothing manufacturing Oil refining

    B. Loan processing Drug manufacturing Custom printing

    C. Custom printing Paint manufacturing Paper manufacturing

    D. Engineering design Auto assembly Motion picture production

    The correct answer is “A”

    WHY???? Why not “C”?

    Thanks,

    AUD - 90
    FAR - 83
    BEC - 81
    REG - 80
    ETHICS - 100

Viewing 6 replies - 1 through 6 (of 6 total)
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  • January 25, 2014 at 9:29 pm #505556
    M.O.D.
    Member

    Paint manufacturing is definitely process costing, not operations (hybrid) costing.

    Whereas clothing manufacturing could be process costing but not necessarily, if it involves assembly of distinct units: arms, legs, buttons, etc it could be hybrid/operations costing.

    Also, oil refining is definitely process costing, whereas paper manufacturing could be operations costing.

    Think of process costing as processing fluids: refinery, oil, paint, beer, whiskey, etc. It is a continuous process.

    BA Mathematics, UC Berkeley
    Certificates in CPA and EA preparation, College of San Mateo
    CMA I 420, II 470
    FAR 91, AUD Feb 2015 (Gleim self-study)

    January 25, 2014 at 9:29 pm #505605
    M.O.D.
    Member

    Paint manufacturing is definitely process costing, not operations (hybrid) costing.

    Whereas clothing manufacturing could be process costing but not necessarily, if it involves assembly of distinct units: arms, legs, buttons, etc it could be hybrid/operations costing.

    Also, oil refining is definitely process costing, whereas paper manufacturing could be operations costing.

    Think of process costing as processing fluids: refinery, oil, paint, beer, whiskey, etc. It is a continuous process.

    BA Mathematics, UC Berkeley
    Certificates in CPA and EA preparation, College of San Mateo
    CMA I 420, II 470
    FAR 91, AUD Feb 2015 (Gleim self-study)

    January 25, 2014 at 9:35 pm #505558
    Anonymous
    Inactive
    January 25, 2014 at 9:35 pm #505607
    Anonymous
    Inactive
    January 25, 2014 at 9:49 pm #505560
    Topsya
    Member

    Thank you M.O.D. !!!!!

    AUD - 90
    FAR - 83
    BEC - 81
    REG - 80
    ETHICS - 100

    January 25, 2014 at 9:49 pm #505609
    Topsya
    Member

    Thank you M.O.D. !!!!!

    AUD - 90
    FAR - 83
    BEC - 81
    REG - 80
    ETHICS - 100

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