MC2–1
Chapter 2
Product Costing: Manufacturing Processes, Cost Terminology, and
Cost Flows
Multiple Choice
1. (LO 1—Characteristics of traditional manufacturing environment)
2. (LO 1—Characteristics of traditional manufacturing environment)
Answer: A
3. (LO 2—JIT environment)
Answer: C
4. (LO 2—Lean manufacturing)
5. (LO 2—Lean production and JIT)
6. (LO 2—Manufacturing cells)
7. (LO 3—Manufacturing costs: indirect labor)
8. (LO 3—Manufacturing costs)
9. (LO 3—Product cost per unit)
Solutions to Multiple Choice
10. (LO 4 and 5—Basic cost flows, income statement)
11. (LO 4—Basic cost flows: cost of goods manufactured)
12. (LO 4—Basic cost flows)
13. (LO2 and 4—Cost flows in a JIT environment)
14. (LO 4—Basic cost flows: raw materials used)
Chapter 2: Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows
MC2–3
15. (LO 4 and 5—Basic cost flows: Cost of goods manufactured)
16. (LO 4 and 5—Cost of goods sold)
17. (LO 5—Product versus period costs)