Question 1

__________ is the recognition and recording of costs.

Accepted Answer

The answer of __________ is the recognition and recording of...

Question 2

Perishability refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 3

Figure 5 - 1 The Nautical Corporation manufactures custom-made wood wall units. The following data pertains to Job X4A:
  Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units.
Refer to Figure 5-1. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

Accepted Answer

A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50 
A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50

Question 4

Abnormal spoilage is charged to the job that caused it.

Accepted Answer

A) True 
 B)False

Question 5

Inseparability means that production and consumption are inseparable for services.

Accepted Answer

A) True 
 B)False

Question 6

Collossal Company uses a predetermined rate to apply overhead. At the beginning of the year, Collossal estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000. Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Collossal?

Accepted Answer

A)  $249,280 
B)  $246,000 
C)  $240,000 
D)  $264,000 
A)  $249,280 
B)  $246,000 
C)  $240,000 
D)  $264,000

Question 7

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Accepted Answer

Employees are key to customer services.

Question 8

Total manufacturing-related costs incurred for Anhauser Company in August for all jobs is as follows:   Assuming Anhauser uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

Accepted Answer

A)  $900 
B)  $350 
C)  $1,450 
D)  $1,650 
A)  $900 
B)  $350 
C)  $1,450 
D)  $1,650

Question 9

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 activity rate for purchasing?

Accepted Answer

A)  $ 1.25 
B)  $ 8 
C)  $ 3.75 
D)  $ 40 
A)  $ 1.25 
B)  $ 8 
C)  $ 3.75 
D)  $ 40

Question 10

The maximum output that can be realized if everything operates efficiently is referred to as:

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 11

The job-order cost sheet accumulates the cost of all the jobs produced.

Accepted Answer

A) True 
 B)False

Question 12

The collection of all job cost sheets defines a

Accepted Answer

A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file. 
A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file.

Question 13

A pure service organization has

Accepted Answer

A)  no raw materials, no inventories, and a definite separation between the plant and the customer. 
B)  raw materials, tangible items, and no separation between the plant and the customer. 
C)  no raw materials, no tangible items, and no separation between the plant and the customer. 
D)  none of these. 
A)  no raw materials, no inventories, and a definite separation between the plant and the customer. 
B)  raw materials, tangible items, and no separation between the plant and the customer. 
C)  no raw materials, no tangible items, and no separation between the plant and the customer. 
D)  none of these.

Question 14

Sound of Thunder Company has a job costing system. The following items appeared in the Work-in-Process account during April 2014:
   Sound of Thunder applies overhead to production on the basis of direct labor hours. Job XX, the only job in process on April 30, has been charged $10,600 materials cost and has 100 labor hours of direct labor time assigned to it.
Required:

Accepted Answer

a. Determine the predetermined factory o

Question 15

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises:
  Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Accepted Answer

A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250 
A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250

Question 16

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Accepted Answer

A)  job-order costing 
B)  process costing 
C)  normal costing 
D)  standard costing 
A)  job-order costing 
B)  process costing 
C)  normal costing 
D)  standard costing

Question 17

On March 9, 2014, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

Accepted Answer

A)  $17,000. 
B)  $11,000. 
C)  $6,000. 
D)  $26,000. 
A)  $17,000. 
B)  $11,000. 
C)  $6,000. 
D)  $26,000.

Question 18

Normal costing uses which cost in work in process?

Accepted Answer

A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead 
A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead

Question 19

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

Accepted Answer

A)  debited to the job. 
B)  debited to manufacturing overhead control. 
C)  credited to manufacturing overhead control. 
D)  credited to the cost of goods sold. 
A)  debited to the job. 
B)  debited to manufacturing overhead control. 
C)  credited to manufacturing overhead control. 
D)  credited to the cost of goods sold.

Question 20

Intangibility refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

__________ is the recognition and recording of costs.

Perishability refers to the

Abnormal spoilage is charged to the job that caused it.

Inseparability means that production and consumption are inseparable for services.

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Total manufacturing-related costs incurred for Anhauser Company in August for all jobs is as follows: Assuming Anhauser uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

The maximum output that can be realized if everything operates efficiently is referred to as:

The job-order cost sheet accumulates the cost of all the jobs produced.

The collection of all job cost sheets defines a

A pure service organization has

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Normal costing uses which cost in work in process?

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

Intangibility refers to the

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

__________ is the recognition and recording of costs.

Perishability refers to the

Abnormal spoilage is charged to the job that caused it.

Inseparability means that production and consumption are inseparable for services.

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Total manufacturing-related costs incurred for Anhauser Company in August for all jobs is as follows: Assuming Anhauser uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

The maximum output that can be realized if everything operates efficiently is referred to as:

The job-order cost sheet accumulates the cost of all the jobs produced.

The collection of all job cost sheets defines a

A pure service organization has

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Normal costing uses which cost in work in process?

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

Intangibility refers to the

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