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Questions in this quiz (20)
1Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?
- ACost of Goods Sold
- BFactory Labor
- CRaw Materials Inventory
- DManufacturing Overhead
2Which one of the following is a source document that impacts the job cost sheet?
- ALabor time tickets.
- BRaw materials receiving slips.
- CFinished goods shipping documents.
- DMaterials purchase orders.
3If the Manufacturing Overhead account has a debit balance at the end of a period, it means that
- Aactual overhead costs were greater than overhead costs applied to jobs.
- Bno jobs have been completed.
- Cactual overhead costs were equal to overhead costs applied to jobs.
- Dactual overhead costs were less than overhead costs applied to jobs.
4The two major steps in the flow of costs are
- Aallocating and assigning.
- Baccumulating and amortizing.
- Cacquiring and accumulating.
- Daccumulating and assigning.
5Cost of raw materials is debited to Raw Materials Inventory when the
- Abill for the materials is paid.
- Bmaterials are put into production.
- Cmaterials are ordered.
- Dmaterials are received.
6Job cost sheets constitute the subsidiary ledger for the
- AFinished Goods Inventory account.
- BCost of Goods Manufactured account.
- CWork In Process Inventory account.
- DCost of Goods Sold account.
7Which of the following is not viewed as part of assigning manufacturing costs in a job order cost system?
- ACompleted goods are recognized.
- BManufacturing overhead is applied.
- CRaw materials are used.
- DManufacturing overhead is incurred.
8Process costing is not used when
- Alarge volumes are produced.
- Bsimilar goods are being produced.
- Cjobs have distinguishing characteristics.
- Da series of connected manufacturing processes is necessary.
9Overhead application is recorded with a
- Acredit to Manufacturing Overhead.
- Bcredit to job cost sheets.
- Ccredit to Work in Process Inventory.
- Ddebit to Manufacturing Overhead.
10The predetermined overhead rate is based on the relationship between
- Aestimated monthly costs and actual monthly activity.
- Bestimated annual costs and expected annual activity.
- Cestimated annual costs and actual activity.
- Dactual monthly costs and actual annual activity.
11To use activity-based costing, it is necessary to know the
- Acost driver for each activity cost pool.
- Bestimated use of cost drivers per activity.
- Cestimated use of cost drivers per product.
- Dall of the above.
12Which of the following is not a benefit of activity-based costing?
- ABetter management decisions
- BEnhanced control over overhead costs
- CMore accurate product costing
- DLess costly to use
13Predetermined overhead rates in traditional costing are often based on
- Amultiple bases for both job order costing and process costing.
- Bmultiple bases for job order costing and direct labor cost for process costing.
- Cdirect labor cost for job order costing and machine hours for process costing.
- Dmachine hours for job order costing and direct labor cost for process costing.
14Assigning overhead using ABC will usually
- Aresult in the same cost per unit for low volume products as does traditional costing.
- Bincrease the cost per unit for low volume products as compared to a traditional overhead allocation.
- Cdecrease the cost per unit for low volume products as compared to a traditional overhead allocation.
- Dprovide less accurate cost per unit for low volume products than will traditional costing.
15Which of the following is a limitation of activity-based costing?
- APoorer management decisions
- BLess control over overhead costs
- CSome arbitrary allocations continue
- DMore cost pools
16Which best describes the flow of overhead costs in an activity-based costing system?
- AOverhead costs → machine hours → products
- BOverhead costs → activity cost pools → cost drivers → products
- COverhead costs → products
- DOverhead costs → direct labor cost or hours → products
17Companies that switch to ABC often find they have
- Abeen overpricing some products.
- Bpossibly losing market share to competitors.
- Cbeen sacrificing profitability by underpricing some products.
- Dall of the these answers are correct.
18Which of the following is a non-value-added activity?
- APainting
- BInventory control
- CMachining
- DAssembly
19Value-added activities
- Aincrease the perceived worth of a product or service to customers.
- Binvolve those activities that are essential to a company’s operations.
- Cinclude engineering design, machining, and assembly.
- Dall of the above.
20The presence of any of the following factors would suggest a switch to ABC except when
- Athe manufacturing process has changed significantly.
- Bproduction managers are ignoring data provided by the existing system.
- Cproduct lines differ greatly in volume.
- Doverhead costs constitute a minor portion of total costs.
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- Quiz on Untitled, created by Bridney Smith on 28/06/2022.
- Author
- Bridney Smith
- Language
- English
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