When goods are completed and come off the assembly line A) Cost of Goods Sold is

Question

When goods are completed and come off the assembly line A) Cost of Goods Sold is debited and finished goods is credited B) Work-in process inventory is debited and finished goods is credited C) Finished goods is debited and Cost of Goods Sold is credited 5. k-in-process inventory is credited and finished goods is debited 6. Costs that are traceable to a particular unit and are inventoriable are called A) Period costs B) Product costs C) Overhead costs D) Job costs Goods that are still in the production process would be in which accoun? A) Materials inventory B) Work-in-process inventory C) Finished goods inventory D) Cost of goods sold 7. 8. The salaries paid to employees working directly on a company's products would be shown as a A) Credit to Direct Labor B) Debit to Direct Labor C) Credit to Work-in-Process D) Debit to Manufacturing overhead

Explanation / Answer

Ans 5) When goods are completed and come off the assembly line ; WORK-IN-PROCESS INVENTORY Credited and FINISHED GOODS debited

Ans 6) Cost that are traceable to a particular product and inventoriable are called as PRODUCT COST.

Ans7) Goods that are still in production process will be in account WORK-IN-PROCESS INVENTORY

Ans8) The salaries paid to employees working directly on a company's products would be shown as Debit to DIRECT LABOUR

TRUE /FALSE

1)Responsibility margin is useful in evaluating the consequences of short-run marketing strategies, while contribution margin is more useful in evaluating long-term profitability -FALSE

2) An accounting sysytem designed to measure the performance of center within business is called as Responsibilty Accounting System - TRUE

3)The transfer price is the dollar amount used in recording sales to primary customers. FALSE

4) one purpose of responsibility accounting manager is to evaluate the perfomance of manager incharge of particular center - TRUE

5)Profit center only generates revenue , not costs - FALSE

MULTIPLE CHOICE

Ans : The term responsibility center reflects the idea that the "centers: of a business usually are defined in a manner such that each center is under the control of a specified center manager.

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