me ID: B 24. Which of the following terms apply to materials and supplies that c
ID: 2541342 • Letter: M
Question
me ID: B 24. Which of the following terms apply to materials and supplies that can be traced conveniently to specific Manufacturing overhead a. b. c. d. Direct costs Indirect materials Indirect manufacturing costs 25. In a process costing system, percentage of.completion factors normally are obtained from a. accounting records. b. supervisors in the production departments. c. time cards. d. job order cost cards. 26. Costs such as salary of supervisors and other support personnel, which are accounted for as overhcad costs are called a. prime labor costs. b. indirect labor costs. c. sales assistance costs. d. period labor costs. 27. Which of the following statements is true of nonvalue-adding activities? a. They are wasteful and targeted for elimination. b. They are included in the value chain of activities. c. They are unnecessary activities d. They add cost to a product or service but does not increase its market value. Which of the following is not included in conversion costs? a. Indirect labor b. Direct materials c. Overhead d. Direct labor 28. 29. Which of the following statements is true of a traditional operating environment? It uses a multiskilled work force. a. b. It plans by using pull-through production scheduling. It always maintains less or no inventory d.) It has long production runs with infrequent setups. 30. When computing the cost per equivalent unit, the FIFO costing method considers a. current costs only b. current costs plus ending work in process inventory costs. c. current costs plus beginning work in process inventory costs d. current costs less ending work in process inventory costsExplanation / Answer
Solution : Solving the first 5 MCQ's
24 .the correct option is b : Direct Costs. Since they are directly traceable to the specific prodcuct. Other options such as overheads and indirect costs are generally non traceable costs.
25. The corect option is d :Job order cost cards . Based on the job order cost card, we can come to know the direct material, labor, manufacturing overhead has been allocated and completed for the particular process.
26. The correct option is b. Indirect labor costs : Indirect labor costs are all those costs that support the manufacturing process but are not actively involved in the production process. hence the salary of the production supervisor and other support personnel are indirect labor costs.These costs are primarily accounted as overheads.
27. The correct option is a. They are wasteful and targeted for elimination. The non value added activities are those costs that the customer would not be ready to pay for.Hence, these activities are needed to be identified and eliminated as soon as possible to attain profit maximization.
28. The correct option is b. Direct Matetials : Conversion costs is defined the addition of direct labor costs and manufacturing overhead cost. These costs are incurred to convert the raw materials in to finished goods. Hence, direct materials do not form part of conversion costs.
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