Question 1 (2 points) The basic types of cost accounting systems are: Question 1

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Question 1 (2 points)

The basic types of cost accounting systems are:

Question 1 options:

Job order cost systems, activity based cost systems, and process cost systems.

Direct cost systems and indirect cost systems.

Completed job cost systems and work in process cost systems.

Fixed cost systems and variable cost systems.

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Question 2 (2 points)

Under a job order cost system, costs are accumulated for:

Question 2 options:

Each department in the production cycle.

Each batch of production, known as a job or lot.

Each individual unit produced.

Each job supervisor.

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Question 3 (2 points)

Which of the following statements is true about activity-based costing?

Question 3 options:

Only one activity should be used for a company.

Many different activity bases are used in applying overhead.

There can only be one cost driver.

Direct materials and direct labor are applied to work-in-process based upon cost drivers.

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Question 4 (2 points)

Manufacturing overhead is:

Question 4 options:

A direct cost that can traced to a specific job.

An indirect cost that can be traced to a specific job.

A direct cost that cannot be traced to a specific job.

An indirect cost that cannot be traced to a specific job.

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Question 5 (2 points)

A summary of work completed with related unit and total costs in a process costing system is called a(n):

Question 5 options:

Equivalent units production form.

Cost requisition form.

Summary of conversion costs.

Production cost report.

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Question 6 (2 points)

Process cost systems:

Question 6 options:

Are good when companies produce homogeneous units.

May have work-in-process accounts for each department.

Use equivalent units of production.

All of the above.

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Question 7 (2 points)

Per-unit costs:

Question 7 options:

Are relevant only when a company is engaged in manufacturing activities.

Are determined in job order cost systems but cannot be computed when a process cost system is in use.

Are relevant in manufacturing, merchandising, and service industries, regardless of the type of cost accounting system in use.

Are determined by relating manufacturing costs to the number of units sold.

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Question 8 (2 points)

Equivalent units are usually computed for:

Question 8 options:

Only direct materials.

Only direct labor.

Only factory overhead.

All three of the above.

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Question 9 (2 points)

Which of the following costing systems would always use job cost sheets?

Question 9 options:

Job order costing.

Process costing.

Activity-based costing.

All three systems.

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Question 10 (2 points)

The basic types of cost accounting systems are:

Question 10 options:

Direct cost systems and indirect cost systems.

Fixed cost systems and variable cost systems.

Completed job cost systems and work in process cost systems.

Job order cost systems, activity based cost systems, and process cost systems.

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Question 11 (2 points)

A job order cost system would be appropriate in the manufacture of:

Question 11 options:

Breakfast cereal.

Standard-grade plywood.

Custom-made furniture.

Paints.

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Question 12 (2 points)

A job order cost system traces direct materials cost to a particular job by means of:

Question 12 options:

A production budget.

Materials requisitions.

The Materials Inventory controlling account.

A debit to the job cost sheet for the job.

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Question 13 (2 points)

A job cost sheet should:

Question 13 options:

Contain information that summarizes all jobs finished.

Contain information on each individual job in process.

Contain only the direct costs of a particular job.

Only be used for jobs that have been completed.

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Question 14 (2 points)

Underapplied overhead at the end of a month:

Question 14 options:

Is represented by a credit balance remaining in the Manufacturing Overhead account.

Is represented by a debit balance remaining in the Manufacturing Overhead account.

Indicates a poorly designed cost accounting system.

Results when actual overhead costs are less than amounts applied to work in process.

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Question 15 (2 points)

Which of the following statements is true about activity-based costing?

Question 15 options:

Direct materials and direct labor are applied to work-in-process based upon cost drivers.

Many different activity bases are used in applying overhead.

Only one activity should be used for a company.

There can only be one cost driver.

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Question 16 (2 points)

In an activity-based costing system, manufacturing overhead costs are divided into separate:

Question 16 options:

Activity bases.

Indirect cost centers.

Activity cost pools.

Cost drivers.

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Question 17 (2 points)

A job order cost system would be suitable for which of the following

Question 17 options:

A manufacturer of candy bars

A manufacturer of laundry detergent

A sailboat builder

A sugar refinery

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Question 18 (2 points)

Process costing would be suitable for

Question 18 options:

Kitchen remodeling

Automobile repair

Boat building

Production of television sets

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Question 19 (2 points)

Process cost systems

Question 19 options:

Are good when companies produce homogeneous units

May have work-in-process accounts for each department.

Use equivalent units of production

All of the above.

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Question 20 (2 points)

Equivalent units of production are

Question 20 options:

A measure representing the percentage of a unit's cost that has been completed.

May be computed separately for each input added during production

May be assigned to beginning work-in-process or ending work-in-process

All of the above

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Question 21 (2 points)

Which company would most likely use a process costing system?

Question 21 options:

Bic Pens.

Pepsi Cola.

Mars Candy.

All three.

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Question 22 (2 points)

In either a job order or a process cost system, credits to the Materials Inventory account represent:

Question 22 options:

The cost of unused materials returned to the inventory.

The cost of materials relating to finished goods.

The cost of materials placed into production.

The cost of materials purchased during the period.

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Question 23 (2 points)

When either a job order cost system or a process cost system is in use, the Direct Labor account is debited:

Question 23 options:

When direct labor charges are assigned to work in process.

Instead of using a Salaries Expense account.

When employees are paid.

When work is performed, even if not paid immediately.

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Question 24 (2 points)

Equivalent units are usually computed for:

Question 24 options:

Only direct materials.

Only direct labor.

Only factory overhead.

All three of the above.

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Question 25 (2 points)

A process cost system differs from a job order cost system in that:

Question 25 options:

Process cost systems are used when production involves large volumes of standardized products, whereas job cost systems are used when each job or batch of products is uniquely different.

There is no need for overhead application rates in process cost systems.

Per-unit costs are not computed in process cost systems.

Process cost systems are used primarily in service industries, whereas job order cost systems are used in manufacturing operations.

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Question 26 (2 points)

In most process cost systems, per-unit costs are determined by:

Question 26 options:

Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.

Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.

Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.

Unit costs cannot be determined in a process cost system.

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Question 27 (2 points)

In a process cost system, costs flow from one Work in Process Inventory account to the next in the same sequence as:

Question 27 options:

In a job order cost system.

Units flow through production.

In a LIFO periodic inventory system.

Shipped to customers.

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Question 28 (2 points)

The number of equivalent full units of production:

Question 28 options:

May not be greater than the number of units completed by a department.

Is equal to the number of units completed by a department.

May be less than, equal to, or greater than the number of physical units completed during the period.

Is used to complete the overhead application rate.

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Question 29 (2 points)

Manufacturing overhead is:

Question 29 options:

A direct cost that can traced to a specific job.

An indirect cost that can be traced to a specific job.

A direct cost that cannot be traced to a specific job.

An indirect cost that cannot be traced to a specific job.

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Question 30 (2 points)

In a process cost system, the number of units started and completed for a period is given by:

Question 30 options:

Units transferred out less units in ending work in process.

Units transferred out plus units of beginning work in process.

Units transferred out plus units in ending work in process.

Units transferred out less units in beginning work in process.

Job order cost systems, activity based cost systems, and process cost systems.

Direct cost systems and indirect cost systems.

Completed job cost systems and work in process cost systems.

Fixed cost systems and variable cost systems.

Explanation / Answer

Answer 1 : The basic types of cost accounting systems are "Job order cost systems, activity based cost systems, and process cost systems"

Answer 2: Under a job order cost system, costs are accumulated for "Each batch of production, known as a job or lot."

Answer3: "Many different activity bases are used in applying overhead".

Answer4: Manufacturing overhead is "An indirect cost that can be traced to a specific job".

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