Question 1

Why do managers have problems when they compute the actual indirect-cost rates when they use the normal costing system on a weekly or monthly basis?

Accepted Answer

Normal costing is a costing system that

Question 2

When do managers compute the budgeted indirect-cost rate?

Accepted Answer

A) Daily. 
B) Monthly. 
C) Annually. 
D) Quarterly. 
E) Semi-annually. 
A) Daily. 
B) Monthly. 
C) Annually. 
D) Quarterly. 
E) Semi-annually.

Question 3

How do managers use information technology to control costs and gather cost information to help them in their decision-making processes?

Accepted Answer

Managers use and benefit from advances i

Question 4

Which method makes adjustments in individual job records in addition to the general ledger accounts?

Accepted Answer

The adjust

Question 5

Which of the following is not a concern to a manager that utilizes the process-costing system?

Accepted Answer

A) Per-unit cost is average unit cost applied to similar product. 
B) Allocates all of the product costs,including materials and labor. 
C) The cost object is known as a unit or multiple units of a distinct product. 
D) Cost object is masses of identical or similar units of a product or service. 
E) To obtain per-unit cost,divide total product costs of identical products by total number or units produced. 
A) Per-unit cost is average unit cost applied to similar product. 
B) Allocates all of the product costs,including materials and labor. 
C) The cost object is known as a unit or multiple units of a distinct product. 
D) Cost object is masses of identical or similar units of a product or service. 
E) To obtain per-unit cost,divide total product costs of identical products by total number or units produced.

Question 6

Rachel's Yarn Supply Manufacturing uses machine-hours as the only overhead cost allocation base.In 2012,the accountant reported the following information:
 
Required:
Using job costing,compute the 2012 budgeted manufacturing overhead rate.

Accepted Answer

A) $7.14 
B) $14.28 
C) $28.56 
D) $57.12 
E) $114.24 
A) $7.14 
B) $14.28 
C) $28.56 
D) $57.12 
E) $114.24

Question 7

Which of the following describes how managers compute the actual indirect-cost rate?

Accepted Answer

A) Add actual total indirect costs in the pool to the actual total quantity of the cost-allocation base. 
B) Divide actual total indirect costs in the pool by the actual total quantity of the cost-allocation base. 
C) Multiply actual indirect costs in the pool by the actual total quantity of the cost-allocation base 
D) Subtract actual direct costs in the pool from the actual total quality of the cost-allocation base 
E) Subtract actual indirect costs in the pool from the actual quantity of the cost-allocation base 
A) Add actual total indirect costs in the pool to the actual total quantity of the cost-allocation base. 
B) Divide actual total indirect costs in the pool by the actual total quantity of the cost-allocation base. 
C) Multiply actual indirect costs in the pool by the actual total quantity of the cost-allocation base 
D) Subtract actual direct costs in the pool from the actual total quality of the cost-allocation base 
E) Subtract actual indirect costs in the pool from the actual quantity of the cost-allocation base

Question 8

Which of the following is not a component of manufacturing overhead control?

Accepted Answer

A) Supervision. 
B) Indirect materials. 
C) Plant depreciation. 
D) Indirect manufacturing labor. 
E) Record of manufacturing overhead allocated. 
A) Supervision. 
B) Indirect materials. 
C) Plant depreciation. 
D) Indirect manufacturing labor. 
E) Record of manufacturing overhead allocated.

Question 9

What are the circumstances why managers use actual costing rather than normal costing? Be specific.

Accepted Answer

Managers differentiate between actual co

Question 10

The process costing system is useful to managers when there are masses of identical or similar units of a product or service.

Accepted Answer

A) True 
 B)False

Question 11

Direct material usage can be reported hourly - if the benefits exceed the cost of such frequent reporting.

Accepted Answer

A) True 
 B)False

Question 12

In some service organizations,a variation from normal costing is helpful because actual direct labor costs,the larges component of total costs,can be difficult to trace to jobs as they are completed.

Accepted Answer

A) True 
 B)False

Question 13

The term cost assignment is used to assign only direct costs.

Accepted Answer

A) True 
 B)False

Question 14

Costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way is:

Accepted Answer

A) cost assignment. 
B) cost-allocation base. 
C) job-costing system. 
D) process-costing system. 
E) indirect costs of a cost object. 
A) cost assignment. 
B) cost-allocation base. 
C) job-costing system. 
D) process-costing system. 
E) indirect costs of a cost object.

Question 15

The system that managers do not use too much in organizations today because managers cannot compute costs in a timely manner is:

Accepted Answer

A) direct costing system. 
B) actual costing system. 
C) annual costing system. 
D) diversified costing system. 
E) predetermined costing system. 
A) direct costing system. 
B) actual costing system. 
C) annual costing system. 
D) diversified costing system. 
E) predetermined costing system.

Question 16

Christian's Consulting Service employs 10 full-time consultants and 5 assistants.The direct and indirect costs are applied on a consultant labor-hour basis that includes both the consultants and assistant hours.The following information was reported by the accountant in 2012.
 
Compute the actual direct-cost rate and the actual indirect-cost rate per professional labor-hour.

Accepted Answer

A) $15.56;$2.25 
B) $18.94;$2.75 
C) $21.52;$2.95 
D) $32.27;$4.54 
E) $35.96;$4.95 
A) $15.56;$2.25 
B) $18.94;$2.75 
C) $21.52;$2.95 
D) $32.27;$4.54 
E) $35.96;$4.95

Question 17

The Operations Manager at Mary's Pastry Shoppe requested a machine shop to build a special pastry machine to add extra jellies and sprinkles on their pastries.Mary estimated that the actual annual indirect-costs to make pastries in the new machine are $6,000 and the actual annual quantity of the cost-allocation base is 2,000.Compute the actual indirect-cost rate.

Accepted Answer

A) $1 
B) $2 
C) $3 
D) $4 
E) $5 
A) $1 
B) $2 
C) $3 
D) $4 
E) $5

Question 18

In job-costing systems,the cost-object is a unit or multiple units of a distinct product or service called a:

Accepted Answer

A) job. 
B) cost. 
C) method. 
D) process. 
E) service. 
A) job. 
B) cost. 
C) method. 
D) process. 
E) service.

Question 19

The manager at Printing Solutions Company reported that a machine used 1,000 machine-hours.The cost allocation rate is $75 per machine-hour.
Required:
How should the manager allocate this cost?

Accepted Answer

A) $13.33. 
B) $130. 
C) $1,000. 
D) $1,075. 
E) $75,000. 
A) $13.33. 
B) $130. 
C) $1,000. 
D) $1,075. 
E) $75,000.

Question 20

Managers order materials with a basic source document called a ________ ________ ________,which contains information about the cost of direct materials used on a specific job and in a specific department.

Accepted Answer

A) job-cost sheet 
B) job-cost record 
C) labor-time sheet 
D) indirect-cost record 
E) materials-requisition record 
A) job-cost sheet 
B) job-cost record 
C) labor-time sheet 
D) indirect-cost record 
E) materials-requisition record

Why do managers have problems when they compute the actual indirect-cost rates when they use the normal costing system on a weekly or monthly basis?

When do managers compute the budgeted indirect-cost rate?

How do managers use information technology to control costs and gather cost information to help them in their decision-making processes?

Which method makes adjustments in individual job records in addition to the general ledger accounts?

Which of the following is not a concern to a manager that utilizes the process-costing system?

Rachel's Yarn Supply Manufacturing uses machine-hours as the only overhead cost allocation base.In 2012,the accountant reported the following information: Required: Using job costing,compute the 2012 budgeted manufacturing overhead rate.

Which of the following describes how managers compute the actual indirect-cost rate?

Which of the following is not a component of manufacturing overhead control?

What are the circumstances why managers use actual costing rather than normal costing? Be specific.

The process costing system is useful to managers when there are masses of identical or similar units of a product or service.

Direct material usage can be reported hourly - if the benefits exceed the cost of such frequent reporting.

In some service organizations,a variation from normal costing is helpful because actual direct labor costs,the larges component of total costs,can be difficult to trace to jobs as they are completed.

The term cost assignment is used to assign only direct costs.

Costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way is:

The system that managers do not use too much in organizations today because managers cannot compute costs in a timely manner is:

In job-costing systems,the cost-object is a unit or multiple units of a distinct product or service called a:

The manager at Printing Solutions Company reported that a machine used 1,000 machine-hours.The cost allocation rate is $75 per machine-hour. Required: How should the manager allocate this cost?

Managers order materials with a basic source document called a ,which contains information about the cost of direct materials used on a specific job and in a specific department.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 4: Job Costing

Why do managers have problems when they compute the actual indirect-cost rates when they use the normal costing system on a weekly or monthly basis?

When do managers compute the budgeted indirect-cost rate?

How do managers use information technology to control costs and gather cost information to help them in their decision-making processes?

Which method makes adjustments in individual job records in addition to the general ledger accounts?

Which of the following is not a concern to a manager that utilizes the process-costing system?

Rachel's Yarn Supply Manufacturing uses machine-hours as the only overhead cost allocation base.In 2012,the accountant reported the following information: Required: Using job costing,compute the 2012 budgeted manufacturing overhead rate.

Which of the following describes how managers compute the actual indirect-cost rate?

Which of the following is not a component of manufacturing overhead control?

What are the circumstances why managers use actual costing rather than normal costing? Be specific.

The process costing system is useful to managers when there are masses of identical or similar units of a product or service.

Direct material usage can be reported hourly - if the benefits exceed the cost of such frequent reporting.

In some service organizations,a variation from normal costing is helpful because actual direct labor costs,the larges component of total costs,can be difficult to trace to jobs as they are completed.

The term cost assignment is used to assign only direct costs.

Costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way is:

The system that managers do not use too much in organizations today because managers cannot compute costs in a timely manner is:

In job-costing systems,the cost-object is a unit or multiple units of a distinct product or service called a:

The manager at Printing Solutions Company reported that a machine used 1,000 machine-hours.The cost allocation rate is $75 per machine-hour. Required: How should the manager allocate this cost?

Managers order materials with a basic source document called a ________ ________ ________,which contains information about the cost of direct materials used on a specific job and in a specific department.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Process Costing and Cost Allocation

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Managers order materials with a basic source document called a ,which contains information about the cost of direct materials used on a specific job and in a specific department.