Job Costing

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Questions Bank

The Manager and Management Accounting
An Introduction to Cost Terms and Purposes
Cost-Volume-Profit Analysis
Job Costing
Activity-Based Costing and Activity-Based Management
Master Budget and Responsibility Accounting
Flexible Budgets, Direct-Cost Variances, and Management Control
Flexible Budgets, Overhead Cost Variances, and Management Control
Inventory Costing and Capacity Analysis
Determining How Costs Behave
Decision Making and Relevant Information
Strategy, Balanced Scorecard, and Strategic Profitability Analysis
Pricing Decisions and Cost Management
Cost Allocation, Customer-Profitability Analysis, and Sales-Variance Analysis
Allocation of Support-Department Costs, Common Costs, and Revenues
Cost Allocation: Joint Products and Byproducts
Process Costing
Spoilage, Rework, and Scrap
Balanced Scorecard: Quality and Time
Inventory Management, Just-in-Time, and Simplified Costing Methods
Capital Budgeting and Cost Analysis
Management Control Systems, Transfer Pricing, and Multinational Considerations
Performance Measurement, Compensation, and Multinational Considerations

All Questions

Question 1

Free

Multiple Choice

A cost is considered direct if it can be traced to a particular cost object in a cost effective way which means it can be

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traced easily with the aid of technology

traced in a manner that is accurate

traced in an economically feasible way

possibly traced accurately with an investment in hardware and software

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Question 2

Free

Multiple Choice

A ________ is anything for which a measurement of costs is desired.

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cost-allocation base

cost pool

cost object

cost-application base

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Question 3

Free

Multiple Choice

A ________ is a grouping of individual indirect cost items.

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cost-allocation base

cost assignment

cost pool

job-costing system

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Question 4

Free

Multiple Choice

A manufacturer utilizes three separate indirect cost pools. Which of the following is true?

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Each indirect cost pool utilizes a separate cost-allocation rate

Each indirect cost pool is a subset of total direct costs

Each indirect cost pool relates to multiple cost centers

Each indirect cost pool utilizes the same cost-allocation rate for all costs incurred

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Question 5

Free

Multiple Choice

Direct costs ________ .

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are anything for which a measurement of costs is desired

are costs related to a particular cost object that can be traced to that cost object in an economically feasible manner

focus specifically on the costing needs of the CFO

are costs related to a particular cost object that cannot be traced to that cost object in a cost-effective manner

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Question 6

Multiple Choice

In a costing system, ________ .

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cost tracing allocates indirect costs

cost allocation assigns direct costs

a cost-allocation base can be either financial or nonfinancial

a cost object should be a product and not a department or a geographic territory

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Question 7

Multiple Choice

Assigning direct costs to a cost object is called ________ .

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cost allocation

cost assignment

cost pooling

cost tracing

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Question 8

Multiple Choice

________ is the process of assigning indirect costs to products.

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Cost allocation

Job cost recording

Cost pooling

Cost tracing

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Question 9

Multiple Choice

Allocating indirect costs to departments based on the relative revenue earned by those departments is done based on which of the following criterion?

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direct hours utilized

benefits received

material resources used

cause-and-effect relationships

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Question 10

Multiple Choice

Which of the following includes both traced direct costs and allocated indirect costs?

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cost tracing

cost pools

cost assignments

cost allocations

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Question 11

Multiple Choice

The cost allocation base ________ .

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is a grouping of individual indirect cost items

are costs related to a particular cost object that cannot be traced to that cost object in an economically feasible way

is anything for which a measurement of costs is desired

is a systematic way to link an indirect cost or group of indirect costs to cost objects

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Question 12

True/False

Direct costs are allocated to the cost object using a cost-allocation method.

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True

False

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Question 13

True/False

A cost object is anything for which a measurement of costs is desired.

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True

False

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Question 14

True/False

Direct costs of a cost object are costs related to a particular cost object that can be allocated to that cost object in an economically feasible (cost-effective) way.

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True

False

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Question 15

True/False

The cost-allocation base is a systematic way to link an indirect cost or group of indirect costs to cost objects.

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True

False

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Question 16

True/False

Cost objects may be jobs, products, or customers.

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True

False

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Question 17

True/False

When an organization allocated indirect costs to departments by relative size of the budgets, it is based on the criterion of benefits received.

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True

False

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Question 18

Essay

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system.
Required:
a.direct materials purchased
b.direct materials used
c.direct manufacturing labor
d.indirect manufacturing labor
e.finished goods control
f.cost of goods sold

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Question 19

Essay

Differentiate between a cost pool and a cost-allocation base.

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Question 20

Multiple Choice

Process costing is ________ .

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used to enhance employees' job satisfaction

used by businesses to price unique products or identical products produced in batches

used by businesses to price identical products

used by businesses when manufacturing goods above normal capacity

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Job Costing

A cost is considered direct if it can be traced to a particular cost object in a cost effective way which means it can be

A ________ is anything for which a measurement of costs is desired.

A ________ is a grouping of individual indirect cost items.

A manufacturer utilizes three separate indirect cost pools. Which of the following is true?

Direct costs ________ .

In a costing system, ________ .

Assigning direct costs to a cost object is called ________ .

________ is the process of assigning indirect costs to products.

Allocating indirect costs to departments based on the relative revenue earned by those departments is done based on which of the following criterion?

Which of the following includes both traced direct costs and allocated indirect costs?

The cost allocation base ________ .

Direct costs are allocated to the cost object using a cost-allocation method.

A cost object is anything for which a measurement of costs is desired.

Direct costs of a cost object are costs related to a particular cost object that can be allocated to that cost object in an economically feasible (cost-effective) way.

The cost-allocation base is a systematic way to link an indirect cost or group of indirect costs to cost objects.

Cost objects may be jobs, products, or customers.

When an organization allocated indirect costs to departments by relative size of the budgets, it is based on the criterion of benefits received.

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system.Required:a.direct materials purchasedb.direct materials usedc.direct manufacturing labord.indirect manufacturing labore.finished goods controlf.cost of goods sold

Differentiate between a cost pool and a cost-allocation base.

Process costing is ________ .

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system.
Required:
a.direct materials purchased
b.direct materials used
c.direct manufacturing labor
d.indirect manufacturing labor
e.finished goods control
f.cost of goods sold