Accounting

Click to watch the Tell Me More Learning Objective 1 video and then answer the questions below.

1.  Which of the following manufacturers is most likely to use a process cost system?

1. Purse manufacturer
2. Automobile manufacturer
3. Sports drink manufacturer
4. Guitar manufacturer

2.  Process and job order cost systems are similar in that both systems _______.

1. record and summarize product costs
2. classify product costs as direct materials, direct labor, and factory overhead
3. allocate factory overhead costs to products
4. All of these choices are correct.