Question 1

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

Accepted Answer

A) Custom cabinet manufacturer 
B) Dress designer 
C) Lumber mill 
D) Printing firm 
A) Custom cabinet manufacturer 
B) Dress designer 
C) Lumber mill 
D) Printing firm

Question 2

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 3

Job order cost accounting systems can be used only for companies that manufacture a product.

Accepted Answer

A) True 
 B)False

Question 4

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Accepted Answer

A) increase Work in Process,decrease Materials Inventory. 
B) increase Materials,decrease Work in Process. 
C) increase Factory Overhead,decrease Materials Inventory. 
D) increase Work in Process,decrease Supplies. 
A) increase Work in Process,decrease Materials Inventory. 
B) increase Materials,decrease Work in Process. 
C) increase Factory Overhead,decrease Materials Inventory. 
D) increase Work in Process,decrease Supplies.

Question 5

Use the correct number to designate each item below:
(1) direct matrials
(2) selling and administrative expenses
(3) factory overhead
(4) direct labor

Accepted Answer

The answer of Use the correct number to designate each...

Question 6

Which of the following statements is TRUE regarding lead time?

Accepted Answer

A) Total lead time can be divided into acceptable and non-acceptable lead time. 
B) Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C) Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D) Reducing nonacceptable lead time improves the speed of production,but will not affect product cost. 
A) Total lead time can be divided into acceptable and non-acceptable lead time. 
B) Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C) Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D) Reducing nonacceptable lead time improves the speed of production,but will not affect product cost.

Question 7

Which of the following would most likely be a product cost?

Accepted Answer

A) Salary of VP of sales 
B) Advertising for a particular product 
C) Drill bits for a drill press used in the plant assembly area 
D) Salary of the company receptionist 
A) Salary of VP of sales 
B) Advertising for a particular product 
C) Drill bits for a drill press used in the plant assembly area 
D) Salary of the company receptionist

Question 8

Which of the following would probably NOT be found in the accounting system of a service provider?

Accepted Answer

A) Cost ledger 
B) Finished goods ledger 
C) Cost of services account 
D) Job cost sheets 
A) Cost ledger 
B) Finished goods ledger 
C) Cost of services account 
D) Job cost sheets

Question 9

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 10

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 11

Each account in the work in process subsidiary ledger is called a

Accepted Answer

A) finished goods sheet. 
B) stock record. 
C) materials requisition. 
D) job cost sheet. 
A) finished goods sheet. 
B) stock record. 
C) materials requisition. 
D) job cost sheet.

Question 12

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is NOT true about why a service firm will use the job order costing system?

Accepted Answer

A) To help control costs 
B) To determine client billing 
C) To determine department costs within the firm 
D) To determine profit 
A) To help control costs 
B) To determine client billing 
C) To determine department costs within the firm 
D) To determine profit

Question 14

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Accepted Answer

A) moving a product from process to process as each function is completed. 
B) combining processing functions into work centers and cross-training workers to perform more than one function. 
C) having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating. 
D) having workers typically perform one function on a continuous basis. 
A) moving a product from process to process as each function is completed. 
B) combining processing functions into work centers and cross-training workers to perform more than one function. 
C) having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating. 
D) having workers typically perform one function on a continuous basis.

Question 15

Sales commissions is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

The recording of the jobs completed would decrease

Accepted Answer

A) Factory Overhead. 
B) Finished Goods. 
C) Work in Process. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Finished Goods. 
C) Work in Process. 
D) Cost of Goods Sold.

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

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Job order cost accounting systems can be used only for companies that manufacture a product.

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Use the correct number to designate each item below: (1) direct matrials (2) selling and administrative expenses (3) factory overhead (4) direct labor

Which of the following statements is TRUE regarding lead time?

Which of the following would most likely be a product cost?

Which of the following would probably NOT be found in the accounting system of a service provider?

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Factory overhead is an example of a product cost.

Each account in the work in process subsidiary ledger is called a

Indirect labor would be included in factory overhead.

Which of the following is NOT true about why a service firm will use the job order costing system?

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Sales commissions is an example of factory overhead cost.

The recording of the jobs completed would decrease

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 which of the following businesses would the process cost system be appropriate?

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Job order cost accounting systems can be used only for companies that manufacture a product.

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Use the correct number to designate each item below: (1) direct matrials (2) selling and administrative expenses (3) factory overhead (4) direct labor

Which of the following statements is TRUE regarding lead time?

Which of the following would most likely be a product cost?

Which of the following would probably NOT be found in the accounting system of a service provider?

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Factory overhead is an example of a product cost.

Each account in the work in process subsidiary ledger is called a

Indirect labor would be included in factory overhead.

Which of the following is NOT true about why a service firm will use the job order costing system?

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Sales commissions is an example of factory overhead cost.

The recording of the jobs completed would decrease

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