Question 1

The principal difficulty with normal costing is that

Accepted Answer

A)  the unit cost information is not received on a timely basis. 
B)  it can result in fluctuating per-unit overhead costs. 
C)  estimated overhead and estimated activity are likely to differ from actual overhead and actual costs, resulting in underapplied or overapplied overhead. 
D)  there is no difficulty associated with using normal costing. 
A)  the unit cost information is not received on a timely basis. 
B)  it can result in fluctuating per-unit overhead costs. 
C)  estimated overhead and estimated activity are likely to differ from actual overhead and actual costs, resulting in underapplied or overapplied overhead. 
D)  there is no difficulty associated with using normal costing.

Question 2

The __________ activity level is the production level a firm expects to attain for the coming year.

Accepted Answer

The answer of The __________ activity level is the production...

Question 3

Which of the following costs is NOT included on a job-order cost sheet?

Accepted Answer

A)  direct material costs 
B)  applied factory overhead costs 
C)  direct labor costs 
D)  actual factory overhead costs 
A)  direct material costs 
B)  applied factory overhead costs 
C)  direct labor costs 
D)  actual factory overhead costs

Question 4

Which of the following costs is usually NOT easily traceable to finished units of product?

Accepted Answer

A)  direct labor 
B)  direct materials 
C)  manufacturing overhead 
D)  all of the above 
A)  direct labor 
B)  direct materials 
C)  manufacturing overhead 
D)  all of the above

Question 5

The document that identifies each job and accumulates its manufacturing costs is called:

Accepted Answer

A)  job-order cost sheet 
B)  control account 
C)  production order 
D)  bill of materials 
A)  job-order cost sheet 
B)  control account 
C)  production order 
D)  bill of materials

Question 6

Which of the following is a pure service?

Accepted Answer

A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  software 
A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  software

Question 7

A __________ service organization does not use raw material or tangible items for the customer.

Accepted Answer

The answer of A __________ service organization does not use...

Question 8

A work-in-process inventory file is

Accepted Answer

A)  a file of electronic job-order cost sheets. 
B)  a file cabinet where work tickets are stored. 
C)  a file of electronic materials requisitions. 
D)  none of these. 
A)  a file of electronic job-order cost sheets. 
B)  a file cabinet where work tickets are stored. 
C)  a file of electronic materials requisitions. 
D)  none of these.

Question 9

In a traditional enterprise, the flow of costs through the system is

Accepted Answer

A)  materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold. 
B)  materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory. 
C)  work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold. 
D)  work-in-process inventory, materials inventory, finished goods. 
A)  materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold. 
B)  materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory. 
C)  work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold. 
D)  work-in-process inventory, materials inventory, finished goods.

Question 10

Figure 5 - 8 Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year.
  The following information about the jobs was given for April.
  By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
Refer to Figure 5-8. What is the cost of job 102?

Accepted Answer

A)  $ 86,440 
B)  $ 127,210 
C)  $ 117,170 
D)  none of the above 
A)  $ 86,440 
B)  $ 127,210 
C)  $ 117,170 
D)  none of the above

Question 11

Which of the following costing systems assigns actual costs of materials to inventory?

Accepted Answer

A)  actual costing system 
B)  normal costing system 
C)  standard costing system 
D)  both a and b 
A)  actual costing system 
B)  normal costing system 
C)  standard costing system 
D)  both a and b

Question 12

The association of production costs with the units produced is called:

Accepted Answer

A)  Job-order costing 
B)  Cost assignment 
C)  Cost measurement 
D)  Cost accumulation 
A)  Job-order costing 
B)  Cost assignment 
C)  Cost measurement 
D)  Cost accumulation

Question 13

Figure 5-5 Tonneau Corporation had the following information available for October 2014:
  Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
  Jobs Z3 and Z4 were not completed at the end of December.
Refer to Figure 5-5. What is the balance in Work-in-Process for Tonneau at the end of October?

Accepted Answer

A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750 
A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750

Question 14

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Accepted Answer

A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable. 
A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable.

Question 15

__________ are the source of information for posting the labor cost flows.

Accepted Answer

The answer of __________ are the source of information for...

Question 16

The document which indicates the type and quantity of each material issued to the factory is called the:

Accepted Answer

A)  control account 
B)  materials requisition form 
C)  production list 
D)  work ticket 
A)  control account 
B)  materials requisition form 
C)  production list 
D)  work ticket

Question 17

A debit to Materials Inventory indicates materials were

Accepted Answer

A)  ordered. 
B)  requisitioned. 
C)  put into production. 
D)  purchased. 
A)  ordered. 
B)  requisitioned. 
C)  put into production. 
D)  purchased.

Question 18

The process where a single product is produced on a continuous basis is called:

Accepted Answer

A)  process production 
B)  job-order production 
C)  job production 
D)  both a and c 
A)  process production 
B)  job-order production 
C)  job production 
D)  both a and c

Question 19

The actual __________ costs are not included on a job-order sheet.

Accepted Answer

The answer of The actual __________ costs are not included...

Question 20

When materials are purchased, the costs of the materials "flows" into the materials inventory account.

Accepted Answer

A) True 
 B)False

The principal difficulty with normal costing is that

The __________ activity level is the production level a firm expects to attain for the coming year.

Which of the following costs is NOT included on a job-order cost sheet?

Which of the following costs is usually NOT easily traceable to finished units of product?

The document that identifies each job and accumulates its manufacturing costs is called:

Which of the following is a pure service?

A __________ service organization does not use raw material or tangible items for the customer.

A work-in-process inventory file is

In a traditional enterprise, the flow of costs through the system is

Which of the following costing systems assigns actual costs of materials to inventory?

The association of production costs with the units produced is called:

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

__________ are the source of information for posting the labor cost flows.

The document which indicates the type and quantity of each material issued to the factory is called the:

A debit to Materials Inventory indicates materials were

The process where a single product is produced on a continuous basis is called:

The actual __________ costs are not included on a job-order sheet.

When materials are purchased, the costs of the materials "flows" into the materials inventory account.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

The principal difficulty with normal costing is that

The __________ activity level is the production level a firm expects to attain for the coming year.

Which of the following costs is NOT included on a job-order cost sheet?

Which of the following costs is usually NOT easily traceable to finished units of product?

The document that identifies each job and accumulates its manufacturing costs is called:

Which of the following is a pure service?

A __________ service organization does not use raw material or tangible items for the customer.

A work-in-process inventory file is

In a traditional enterprise, the flow of costs through the system is

Which of the following costing systems assigns actual costs of materials to inventory?

The association of production costs with the units produced is called:

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

__________ are the source of information for posting the labor cost flows.

The document which indicates the type and quantity of each material issued to the factory is called the:

A debit to Materials Inventory indicates materials were

The process where a single product is produced on a continuous basis is called:

The actual __________ costs are not included on a job-order sheet.

When materials are purchased, the costs of the materials "flows" into the materials inventory account.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters