 in this presentation we will take a look at multiple choice questions related to a job cost system first question job costing system characteristics include all but a product diversity b high production volume c heterogeneality d customized inventory and e higher cost of inventory so we'll go through this again see if we can use the process of elimination so we have a job costing system characteristics include all but either a product diversity so if we think about that product diversity we might not know exactly what they're trying to get at with product diversity i'm going to keep that for now we're looking for the exception here the high production volume so again high product we might say well that kind of depends i mean maybe some job cost systems have higher production volumes than other it's kind of depends what we're going to support accounting instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category 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nature and that's typically going to be the case for a job cost system because we're going to have different types of inventory and when we think about a job cost system you'll note that this this problem is kind of uh contrasting or implied contrast against the other system which is a process cost system so we kind of have to keep that in mind in order to see this we can see that there's going to be diversity in a in a job cost system some job cost systems might have more heterogeneity than others but um and some less but when compared to other systems like a process cost system there's going to be more difference in the types of inventory so i'm going to say that that's going to be a characteristic these says customized inventory and again we might think well customized compared to what we might have a job cost system that's more or less customized but in comparison to a process cost system it's going to be more customized and that's really kind of how we have to think about these things and then ease is higher cost of inventory um and typically we typically will because these characteristics all follow from the concept that we will have more differentiation in product products and if they're more customized products then of course we are going to have higher prices for them right that's the point in comparison to a process cost system where our goal is to lower prices and costs by making everything all the same so this one is going to typically have higher prices so we're left with a and b let's go through this again job costing system characteristics include all but a product diversity b high production volume so if we go as we go through this again product diversity is basically the same as heterogeneity right they're going to be meaning there's there's difference in products so if we take a look at a c and d they all basically mean the same thing right a you know product diversity means there's going to be different types of products and customization basically means there's going to be different types of products that we're making heterogeneity means there's different types of products and all that differentiation that we're talking about in these three different ways so these these three in other words could cancel each other out if we were to look at this in terms of just test taking skills we can probably say well those pretty much all look the same they can all be right those must be gone and then the higher cost of inventory follows from the fact that they're all different in nature because that'll be different than if they were all same in nature which would make it easy to produce and therefore cheaper so we're left with b high production volume and that that makes sense because we can't have a high production we'll probably and again we're comparing this to a process cost system we're going to have a lower production volume because of all this diversity in production so all of our products are different in nature so when compared to a process cost system then it we're not going to be able to make as many of them we're going to customize them make fewer of them hopefully charge more for them so final answer job costing system characteristics include all but b high production volume next question the production activities for a customized product is a accounts receivable b a job c a unit of production d finished goods or e a process let's go through this again the production activity for a customized product is a accounts receivable and now that one just doesn't sound right at all you know a production activities doesn't sound like accounts receivable so I'm going to cross out b says a job and that's plausible because we're talking about a job cost system the production activities for a customized product so I'll keep that for now c says a unit of production you know that's possible a unit of production I'll keep that for now d says finished goods the production activities for a customized product it may not be finished goods because it could be either type of inventory working process or finished goods as we go so I'm not going to say it's probably not that finished goods it's going to be the unit of all the goods finished but it's not really breaking out which units we're having which which units are owed to who it's just going to be grouped up in finished goods it's not the supporting documentation and then he says a process and again that you could think of that that it would be part of a process I'll keep that for now let's go through it again the production activity for a customized product is now when we think of a customized product we're thinking about a job cost system probably not a process cost system so I think we can eliminate e here and then it's between a job and a unit of production now these two these two are kind of like the same thing right a unit of production is is what one thing we're working on it sounds like but it's more specifically termed typically a job so a job I think this is most likely the answer here that we're looking for the unit of protection being the job so final answer the production activities for a customized product is be a job