Question 1

A cost pool is a grouping of individual direct cost items.

Accepted Answer

A) True 
 B)False

Question 2

The system that calculates the actual costs of jobs 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 3

Casio Company manufactures stereos.For each unit,$3,500 of direct material is used and there is $2,500 of direct manufacturing labor at $25 per hour.Manufacturing overhead is applied at $40 per direct manufacturing labor hour.Compute the cost of each unit.

Accepted Answer

A) $2,500 
B) $4,845 
C) $6,045 
D) $7,750 
E) $9,500 
A) $2,500 
B) $4,845 
C) $6,045 
D) $7,750 
E) $9,500

Question 4

The specific term for assigning direct costs is:

Accepted Answer

A) cost pool. 
B) cost tracing. 
C) cost assignment. 
D) job-costing system. 
E) cost allocation base. 
A) cost pool. 
B) cost tracing. 
C) cost assignment. 
D) job-costing system. 
E) cost allocation base.

Question 5

Cost pools can range from broad,such as all manufacturing-plant costs,to narrow,such as the costs of operating metal-cutting machines.

Accepted Answer

A) True 
 B)False

Question 6

In 2012,Jim's Renovation Services used machine-hours as the only overhead cost-allocation base.According to his accountant,the following information was reported:
 
Under the actual-costing system,what was the 2012 budgeted manufacturing rate?

Accepted Answer

A) $4.00 per machine hour 
B) $4.66 per machine hour 
C) $4.75 per machine hour 
D) $4.95 per machine hour 
E) $5.10 per machine hour 
A) $4.00 per machine hour 
B) $4.66 per machine hour 
C) $4.75 per machine hour 
D) $4.95 per machine hour 
E) $5.10 per machine hour

Question 7

Is the use of budgeted rates for direct costs different to the methods employed when using budgeted rates for indirect costs in normal costing?

Accepted Answer

The use of budgeted rates for direct cos

Question 8

In U.S.government contracting firms,errors in accounting for costs can then lead to overcharging the government and penalties and fines for the companies.

Accepted Answer

A) True 
 B)False

Question 9

The iMac computer,or the service cost of repairing an iMac computer,are examples of:

Accepted Answer

A) cost objects. 
B) cost assignments. 
C) direct costs of a cost object. 
D) indirect costs of a cost object. 
E) semi-direct costs of a cost object. 
A) cost objects. 
B) cost assignments. 
C) direct costs of a cost object. 
D) indirect costs of a cost object. 
E) semi-direct costs of a cost object.

Question 10

In the manufacturing sector,the construction of ships at a company is an example of a company that utilizes job costing.

Accepted Answer

A) True 
 B)False

Question 11

Actual costing uses actual indirect cost rates calculated annually at the end of the year.

Accepted Answer

A) True 
 B)False

Question 12

The two underlying reasons that managers use longer time periods,such as a year,to calculate indirect-cost rates are:

Accepted Answer

A) ability;capability. 
B) process systems;evaluation. 
C) quality of cost base;systems. 
D) job-costing systems;job pools. 
E) numerator reason;denominator reason. 
A) ability;capability. 
B) process systems;evaluation. 
C) quality of cost base;systems. 
D) job-costing systems;job pools. 
E) numerator reason;denominator reason.

Question 13

Direct materials used and direct manufacturing labor costs cannot be easily traced to jobs.

Accepted Answer

A) True 
 B)False

Question 14

The following data was reported by the manager at Cost Less Manufacturing:
 
Required:
Compute the actual manufacturing overhead rate for the single manufacturing overhead cost pool.

Accepted Answer

A) $25.62 per direct manufacturing labor-hour 
B) $50.25 per direct manufacturing labor-hour 
C) $68.75 per direct manufacturing labor-hour 
D) $72.50 per direct manufacturing labor-hour 
E) $78.62 per direct manufacturing labor-hour 
A) $25.62 per direct manufacturing labor-hour 
B) $50.25 per direct manufacturing labor-hour 
C) $68.75 per direct manufacturing labor-hour 
D) $72.50 per direct manufacturing labor-hour 
E) $78.62 per direct manufacturing labor-hour

Question 15

When there are more than two support departments with reciprocal relationships,manager can use software such as Excel to calculate the complete reciprocated costs of each support department.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Per-unit cost is the ________ unit cost.

Accepted Answer

A) one 
B) only 
C) simple 
D) complex 
E) average 
A) one 
B) only 
C) simple 
D) complex 
E) average

Question 18

What is a challenge to managers when they implement job-costing systems?

Accepted Answer

Managers are challenged with implementin

Question 19

In 2012,Alan's Seafood Supply Manufacturing uses machine-hours as the only overhead cost-allocation base.The accountant reported the following information:
 
Using job costing,compute the 2012 actual indirect cost rate.

Accepted Answer

A) $3.85 per machine hour 
B) $3.95 per machine hour 
C) $4.45 per machine hour 
D) $4.54 per machine hour 
E) $4.85 per machine hour 
A) $3.85 per machine hour 
B) $3.95 per machine hour 
C) $4.45 per machine hour 
D) $4.54 per machine hour 
E) $4.85 per machine hour

Question 20

Modern information technology provides managers with quick and accurate information,making it easier to manage and control jobs.

Accepted Answer

A) True 
 B)False

A cost pool is a grouping of individual direct cost items.

The system that calculates the actual costs of jobs is:

Casio Company manufactures stereos.For each unit,$3,500 of direct material is used and there is $2,500 of direct manufacturing labor at $25 per hour.Manufacturing overhead is applied at $40 per direct manufacturing labor hour.Compute the cost of each unit.

The specific term for assigning direct costs is:

Cost pools can range from broad,such as all manufacturing-plant costs,to narrow,such as the costs of operating metal-cutting machines.

In 2012,Jim's Renovation Services used machine-hours as the only overhead cost-allocation base.According to his accountant,the following information was reported: Under the actual-costing system,what was the 2012 budgeted manufacturing rate?

Is the use of budgeted rates for direct costs different to the methods employed when using budgeted rates for indirect costs in normal costing?

In U.S.government contracting firms,errors in accounting for costs can then lead to overcharging the government and penalties and fines for the companies.

The iMac computer,or the service cost of repairing an iMac computer,are examples of:

In the manufacturing sector,the construction of ships at a company is an example of a company that utilizes job costing.

Actual costing uses actual indirect cost rates calculated annually at the end of the year.

The two underlying reasons that managers use longer time periods,such as a year,to calculate indirect-cost rates are:

Direct materials used and direct manufacturing labor costs cannot be easily traced to jobs.

The following data was reported by the manager at Cost Less Manufacturing: Required: Compute the actual manufacturing overhead rate for the single manufacturing overhead cost pool.

When there are more than two support departments with reciprocal relationships,manager can use software such as Excel to calculate the complete reciprocated costs of each support department.

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

Per-unit cost is the ________ unit cost.

What is a challenge to managers when they implement job-costing systems?

In 2012,Alan's Seafood Supply Manufacturing uses machine-hours as the only overhead cost-allocation base.The accountant reported the following information: Using job costing,compute the 2012 actual indirect cost rate.

Modern information technology provides managers with quick and accurate information,making it easier to manage and control jobs.

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

A cost pool is a grouping of individual direct cost items.

The system that calculates the actual costs of jobs is:

Casio Company manufactures stereos.For each unit,$3,500 of direct material is used and there is $2,500 of direct manufacturing labor at $25 per hour.Manufacturing overhead is applied at $40 per direct manufacturing labor hour.Compute the cost of each unit.

The specific term for assigning direct costs is:

Cost pools can range from broad,such as all manufacturing-plant costs,to narrow,such as the costs of operating metal-cutting machines.

In 2012,Jim's Renovation Services used machine-hours as the only overhead cost-allocation base.According to his accountant,the following information was reported: Under the actual-costing system,what was the 2012 budgeted manufacturing rate?

Is the use of budgeted rates for direct costs different to the methods employed when using budgeted rates for indirect costs in normal costing?

In U.S.government contracting firms,errors in accounting for costs can then lead to overcharging the government and penalties and fines for the companies.

The iMac computer,or the service cost of repairing an iMac computer,are examples of:

In the manufacturing sector,the construction of ships at a company is an example of a company that utilizes job costing.

Actual costing uses actual indirect cost rates calculated annually at the end of the year.

The two underlying reasons that managers use longer time periods,such as a year,to calculate indirect-cost rates are:

Direct materials used and direct manufacturing labor costs cannot be easily traced to jobs.

The following data was reported by the manager at Cost Less Manufacturing: Required: Compute the actual manufacturing overhead rate for the single manufacturing overhead cost pool.

When there are more than two support departments with reciprocal relationships,manager can use software such as Excel to calculate the complete reciprocated costs of each support department.

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

Per-unit cost is the ________ unit cost.

What is a challenge to managers when they implement job-costing systems?

In 2012,Alan's Seafood Supply Manufacturing uses machine-hours as the only overhead cost-allocation base.The accountant reported the following information: Using job costing,compute the 2012 actual indirect cost rate.

Modern information technology provides managers with quick and accurate information,making it easier to manage and control jobs.

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