Process Costing System Multiple Choice Questions with Answers – PDF Download

MCQ 1: The total costs incur in a production process, is divided by total number of output units, to calculate the:

1. cost of indirect labor
2. cost of direct labor
3. cost of direct material
4. unit costs

MCQ 2: A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as:

1. accounting period costing system
2. process costing system
3. job costing system
4. none of above

MCQ 3: The first step in process costing system is to:

1. summarize flow of output
2. compute output in units
3. summarize total costs
4. compute cost for each equivalent unit

MCQ 4: The fifth step in process costing system is to:

1. allocate separable costs
2. allocate joint costs
3. compute gross margin
4. assign total cost to completed units

MCQ 5: The forth step in process costing system is to:

1. summarize total costs
2. compute cost for each equivalent unit
3. summarize flow of output
4. compute output in units