Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Service Company vs. Merchandising Company

Financial Accounting

4. Merchandising Operations

Service Company vs. Merchandising Company

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Multiple Choice

Which of the following statements is FALSE with respect to job-order costing and process costing?

In job-order costing, each job has its own set of cost records.

Process costing accumulates costs by department or process, rather than by individual job.

Job-order costing is typically used by service companies that provide customized services.

Process costing is best suited for companies that produce unique, one-of-a-kind products.

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Verified step by step guidance

Understand the key concepts of job-order costing and process costing. Job-order costing is used for customized or unique products, where costs are tracked for individual jobs. Process costing is used for mass production of similar items, where costs are accumulated by department or process.

Analyze the statements provided in the problem. Each statement describes characteristics of either job-order costing or process costing. Compare these statements to the definitions and applications of the costing methods.

Evaluate the statement: 'Process costing is best suited for companies that produce unique, one-of-a-kind products.' This contradicts the definition of process costing, which is designed for standardized, repetitive production processes rather than unique products.

Confirm that the false statement is the one that misrepresents process costing. Process costing is not suitable for unique, one-of-a-kind products; job-order costing is better suited for such products.

Conclude that the false statement is: 'Process costing is best suited for companies that produce unique, one-of-a-kind products.' This is inconsistent with the principles of process costing.