Question 1

When a job is completed the total costs are transferred to a inventory file.

Accepted Answer

The answer of When a job is completed the total...

Question 2

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 raw...

Question 3

A normal costing system records which costs in work in process?

Accepted Answer

A)  actual direct materials, actual direct labor, actual manufacturing overhead 
B)  applied direct materials, applied direct labor, applied manufacturing overhead 
C)  applied materials and labor and actual manufacturing overhead 
D)  actual materials and labor and applied manufacturing overhead 
A)  actual direct materials, actual direct labor, actual manufacturing overhead 
B)  applied direct materials, applied direct labor, applied manufacturing overhead 
C)  applied materials and labor and actual manufacturing overhead 
D)  actual materials and labor and applied manufacturing overhead

Question 4

is the recognition and recording of costs.

Accepted Answer

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

Question 5

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in- process inventory.

Accepted Answer

A) True 
 B)False

Question 6

The average activity that a firm experiences in the long term (more than one year) is called:

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 7

Figure 5 - 2
The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $ 15
Machine hours worked 100 hours
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
-Refer to Figure 5-2. What is the labor cost per unit for Job XY5?

Accepted Answer

A)  $4 
B)  $15 
C)  $0.80 
D)  $40 
A)  $4 
B)  $15 
C)  $0.80 
D)  $40

Question 8

The source document known as a time ticket assigns the direct overhead to each particular job.

Accepted Answer

A) True 
 B)False

Question 9

Figure 5-7
The following information is available pertaining to the Production Division of Clarkson Enterprises:
  
-Refer to Figure 5-7. What are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

Accepted Answer

A)  $62.50 
B)  $250.00 
C)  $750.00 
D)  $1,500.00 
A)  $62.50 
B)  $250.00 
C)  $750.00 
D)  $1,500.00

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A job-order costing process would be most applicable for

Accepted Answer

A)  a food processing plant. 
B)  natural gas processing. 
C)  airplane manufacturing. 
D)  fertilizer production. 
A)  a food processing plant. 
B)  natural gas processing. 
C)  airplane manufacturing. 
D)  fertilizer production.

Question 12

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 13

The cost of spoilage is added to a job when it is considered to be

Accepted Answer

A)  a result of the process, no matter what job is being worked on. 
B)  a normal consequence of working on that job. 
C)  abnormal. 
D)  all of these. 
A)  a result of the process, no matter what job is being worked on. 
B)  a normal consequence of working on that job. 
C)  abnormal. 
D)  all of these.

Question 14

Inseparability 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 15

Homogeneous products refer to

Accepted Answer

A)  products similar in nature. 
B)  the nonphysical nature of services and opposed to products. 
C)  great variation in the nature products. 
D)  products that can be inventoried. 
A)  products similar in nature. 
B)  the nonphysical nature of services and opposed to products. 
C)  great variation in the nature products. 
D)  products that can be inventoried.

Question 16

Figure 5 - 4
Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016:
   Factory overhead rate is $18 per direct labor hour.
-Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

Accepted Answer

A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000 
A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000

Question 17

The collection of all job-order cost sheets defines a work-in-process inventory file.

Accepted Answer

A) True 
 B)False

Question 18

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

Accepted Answer

Actual costing systems do not provide ac

Question 19

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

Accepted Answer

A)  units produced 
B)  direct labor hours 
C)  machine hours 
D)  direct materials cost 
A)  units produced 
B)  direct labor hours 
C)  machine hours 
D)  direct materials cost

Question 20

Heterogeneity means that services cannot be inventoried and must be consumed when performed.

Accepted Answer

A) True 
 B)False

When a job is completed the total costs are transferred to a inventory file.

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

A normal costing system records which costs in work in process?

is the recognition and recording of costs.

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in- process inventory.

The average activity that a firm experiences in the long term (more than one year) is called:

The source document known as a time ticket assigns the direct overhead to each particular job.

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

A job-order costing process would be most applicable for

Which of the following is a pure service?

The cost of spoilage is added to a job when it is considered to be

Inseparability refers to the

Homogeneous products refer to

Figure 5 - 4 Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: Factory overhead rate is $18 per direct labor hour. -Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

The collection of all job-order cost sheets defines a work-in-process inventory file.

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

Heterogeneity means that services cannot be inventoried and must be consumed when performed.

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

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

When a job is completed the total costs are transferred to a inventory file.

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

A normal costing system records which costs in work in process?

is the recognition and recording of costs.

In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in- process inventory.

The average activity that a firm experiences in the long term (more than one year) is called:

The source document known as a time ticket assigns the direct overhead to each particular job.

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

A job-order costing process would be most applicable for

Which of the following is a pure service?

The cost of spoilage is added to a job when it is considered to be

Inseparability refers to the

Homogeneous products refer to

Figure 5 - 4 Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: Factory overhead rate is $18 per direct labor hour. -Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

The collection of all job-order cost sheets defines a work-in-process inventory file.

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity driver for a production process using a lathe?

Heterogeneity means that services cannot be inventoried and must be consumed when performed.

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

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