Chapter 4 - Closed Book

Question

The advantage of using normal costing instead of actual costing is:

Answer 1

indirect costs are assigned at the end of the year when they are known

Answer 2

the job is more accurate under normal costing

Answer 3

indirect costs are assigned to a job on a timely basis

Answer 4

normal costing provides a higher gross profit margin

Answer 5

timeliness and convenience of normal costing

Answer 6

allocating budgeted manufacturing overhead costs at the end of the year

Answer 7

write-off to the cost of goods sold approach

Answer 8

the proration approach

Answer 9

rental costs paid monthly

Answer 10

property tax payments made in July and December

Answer 11

routine monthly preventive-maintenance costs that benefit future months

Answer 12

salary hikes at the beginning of the financial year

Answer 13

have not been completed

Answer 14

have been completed but not sold

Answer 15

have been completed and sold to customers

Answer 16

are reported on the income statement

Answer 17

Work-in-Process Control account

Answer 18

Manufacturing Overhead Control account

Answer 19

Cost of Goods Sold account

Answer 20

Factory Depreciation account

Answer 21

actual indirect manufacturing labor is excluded from the total cost of the job

Answer 22

Finished Goods Control is debited

Answer 23

the cost of the job is transferred to Manufacturing Overhead Control

Answer 24

it is reduced from Manufacturing Overhead Control account

Resource summary

	Created by Isabel Robles about 8 years ago