Question 1

For a manufacturing business,inventory that is in the process of being manufactured
Is referred to as

Accepted Answer

A) supplies inventory. 
B) work in process inventory. 
C) finished goods inventory. 
D) direct materials inventory. 
A) supplies inventory. 
B) work in process inventory. 
C) finished goods inventory. 
D) direct materials inventory.

Question 2

If factory overhead applied is less than the actual costs,overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 3

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 4

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in cost accounting systems.

Accepted Answer

A) True 
 B)False

Question 5

The Cranford Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours.Year to date,the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.If the Crawford Company uses
A predetermined overhead rate based on machine hours for applying overhead,what is that overhead rate?

Accepted Answer

A) $80 per machine hour 
B) $150 per machine hour 
C) $75 per machine hour 
D) $40 per machine hour 
A) $80 per machine hour 
B) $150 per machine hour 
C) $75 per machine hour 
D) $40 per machine hour

Question 6

In a job order cost accounting system used by a service business,which of the following items would normally NOT be included as part of overhead?

Accepted Answer

A) Materials 
B) Direct labor 
C) Rent 
D) Supplies 
A) Materials 
B) Direct labor 
C) Rent 
D) Supplies

Question 7

Just-in-time manufacturing practices include all of the following EXCEPT

Accepted Answer

A) eliminating defective or poor-quality products. 
B) partnering with suppliers to provide high-quality,low-cost,on-time materials. 
C) emphasizing push manufacturing to ensure inventory levels that will provide a buffer against production problems. 
D) employee involvement using teams organized in product cells. 
A) eliminating defective or poor-quality products. 
B) partnering with suppliers to provide high-quality,low-cost,on-time materials. 
C) emphasizing push manufacturing to ensure inventory levels that will provide a buffer against production problems. 
D) employee involvement using teams organized in product cells.

Question 8

Which of the following would most likely use a job order costing system?

Accepted Answer

A) A paper mill 
B) A swimming pool installer 
C) A company that manufactures chlorine for swimming pools 
D) An oil refinery 
A) A paper mill 
B) A swimming pool installer 
C) A company that manufactures chlorine for swimming pools 
D) An oil refinery

Question 9

For which of the following businesses would the job order cost system be appropriate?

Accepted Answer

A) Custom cabinet manufacturer 
B) Automobile manufacturer 
C) Lumber mill 
D) Meat processor 
A) Custom cabinet manufacturer 
B) Automobile manufacturer 
C) Lumber mill 
D) Meat processor

Question 10

Service companies can effectively use activity-based costing to compute product (service)costs.

Accepted Answer

A) True 
 B)False

Question 11

At the end of the fiscal year,the balance in Factory Overhead is small.This balance would normally be

Accepted Answer

A) transferred to Work in Process. 
B) transferred to Cost of Goods Sold. 
C) transferred to Finished Goods. 
D) allocated between Work in Process and Finished Goods. 
A) transferred to Work in Process. 
B) transferred to Cost of Goods Sold. 
C) transferred to Finished Goods. 
D) allocated between Work in Process and Finished Goods.

Question 12

The current year's advertising costs are normally considered product costs.

Accepted Answer

A) True 
 B)False

Question 13

The direct labor and overhead costs of providing services to clients are accumulated in

Accepted Answer

A) finished services expense. 
B) work in process. 
C) administrative salaries expense. 
D) overhead. 
A) finished services expense. 
B) work in process. 
C) administrative salaries expense. 
D) overhead.

Question 14

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Accepted Answer

A) purchase order. 
B) sales invoice. 
C) receiving report. 
D) purchase requisition. 
A) purchase order. 
B) sales invoice. 
C) receiving report. 
D) purchase requisition.

Question 15

Factory overhead is applied to production using a predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 16

Costs that are treated as assets until the product is sold are called

Accepted Answer

A) product costs. 
B) period costs. 
C) conversion costs. 
D) selling expenses. 
A) product costs. 
B) period costs. 
C) conversion costs. 
D) selling expenses.

Question 17

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 18

The recording of the factory labor incurred for general factory use would increase

Accepted Answer

A) Factory Overhead. 
B) Wages Payable. 
C) Wages Expense. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Wages Payable. 
C) Wages Expense. 
D) Cost of Goods Sold.

Question 19

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Question 20

If the cost of materials is NOT a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

Accepted Answer

A) True 
 B)False

For a manufacturing business,inventory that is in the process of being manufactured Is referred to as

If factory overhead applied is less than the actual costs,overhead is said to be underapplied.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in cost accounting systems.

In a job order cost accounting system used by a service business,which of the following items would normally NOT be included as part of overhead?

Just-in-time manufacturing practices include all of the following EXCEPT

Which of the following would most likely use a job order costing system?

For which of the following businesses would the job order cost system be appropriate?

Service companies can effectively use activity-based costing to compute product (service)costs.

At the end of the fiscal year,the balance in Factory Overhead is small.This balance would normally be

The current year's advertising costs are normally considered product costs.

The direct labor and overhead costs of providing services to clients are accumulated in

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Factory overhead is applied to production using a predetermined overhead rate.

Costs that are treated as assets until the product is sold are called

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

The recording of the factory labor incurred for general factory use would increase

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

If the cost of materials is NOT a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting Systems for Manufacturing Businesses

For a manufacturing business,inventory that is in the process of being manufactured Is referred to as

If factory overhead applied is less than the actual costs,overhead is said to be underapplied.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in cost accounting systems.

In a job order cost accounting system used by a service business,which of the following items would normally NOT be included as part of overhead?

Just-in-time manufacturing practices include all of the following EXCEPT

Which of the following would most likely use a job order costing system?

For which of the following businesses would the job order cost system be appropriate?

Service companies can effectively use activity-based costing to compute product (service)costs.

At the end of the fiscal year,the balance in Factory Overhead is small.This balance would normally be

The current year's advertising costs are normally considered product costs.

The direct labor and overhead costs of providing services to clients are accumulated in

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Factory overhead is applied to production using a predetermined overhead rate.

Costs that are treated as assets until the product is sold are called

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

The recording of the factory labor incurred for general factory use would increase

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

If the cost of materials is NOT a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters