ACC561 ACC/561 Week 3 Quiz (Score 20/20) - 75768

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Question 1 A major purpose of cost accounting is to a. classify all costs as operating or nonoperating. b. measure, record, and report period costs. c. provide information to stockholders for investment decisions. d. measure, record, and report product costs. Question 2 The two basic types of cost accounting systems are a. job order and job accumulation systems. b. job order and process cost systems. c. process cost and batch systems. d. job order and batch systems Question 3 A process cost system would most likely be used by a company that makes a. motion pictures. b. repairs to automobiles. c. breakfast cereal. d. college graduation announcements. Question 4 Which of the following would be accounted for using a job order cost system? a. The production of personal computers. b. The production of automobiles. c. The refining of petroleum. d. The construction of a new campus building Question 5 The flow of costs in a job order cost system a. involves accumulating manufacturing costs incurred and assigning the accumulatedcosts to work done. b. cannot be measured until all jobs are complete. c. measures product costs for a set time period. d. generally follows a LIFO cost flow assumption Question 6 The entry to record the acquisition of raw materials on account is a. Work in Process Inventory Accounts Payable b. Manufacturing OverheadRaw Materials Inventory Accounts Payable c. Accounts PayableRaw Materials Inventory d. Raw Materials Inventory Accounts Payable Question 7 Time tickets should be approved by a. the audit committee. b. co-workers. c. the employee's supervisor. d. the payroll department Question 8 The labor costs that have been identified as indirect labor should be charged to a. manufacturing overhead. b. direct labor. c. the individual jobs worked on. d. salary expense. Question 9 Manufacturing overhead is applied to each job a. at the time when the overhead cost is incurred. b. by means of a predetermined overhead rate. c. at the end of the year when actual costs are known. d. only if the overhead costs can be directly traced to that job Question 10 A process cost accounting system is most appropriate when a) A variety of different products are produced, each one requiring different types of materials, labor, and overhead. b) The focus of attention is on a particular job or order. c) Similar products are mass-produced. d) Individual products are custom made to the specification of customers Question 11 Which of these best reflects a distinguishing factor between a job order cost system and a process cost system? a. The detail at which costs are calculated b. The time period each covers c. The number of work in process accounts d. The manufacturing cost elements included Question 12 In process cost accounting, manufacturing costs are summarized on a a. job order cost sheet. b. process order cost sheet. c. production cost report. d. manufacturing cost sheet. Question 13 In a process cost system, product costs are summarized: a. on job cost sheets. b. on production cost reports. c. after each unit is produced. d. when the products are sold. Question 14 Which of the following is considered a difference between a job order cost and a process cost system? a. The manufacturing cost elements b. Documents used to track costs c. The accumulation of the costs of materials, labor, and overhead d. The flow of costs Question 15 The costs that are easiest to trace directly to products are a. direct materials and direct labor b. direct labor and overhead. c. direct materials and overhead. d. none of the above; all three costs are equally easy to trace to the product. Question 16 Often the most difficult part of computing accurate unit costs is determining the proper amount of _________ to assign to each product, service, or job a. direct materials and direct labor b. direct materials c. direct labor d. overhead Question 17 The last step in activity-based costing is to a. assign manufacturing overhead costs for each activity cost pool to products. b. compute the activity-based overhead rate per cost driver. c. identify and classify the major activities involved in the manufacture of specific products. d. identify the cost driver that has a strong correlation to the activity cost pool. Question 18 The first step in activity-based costing is to a. identify and classify the major activities involved in the manufacture of specific products. b. identify the cost driver that has a strong correlation to the activity cost pool. c. assign manufacturing overhead costs for each activity cost pool to products. d. compute the activity-based overhead rate per cost driver. Question 19 A well-designed activity-based costing system starts with a. assigning manufacturing overhead costs for each activity cost pool to products. b. analyzing the activities performed to manufacture a product. c. identifying the activity-cost pools. d. computing the activity-based overhead rate. Question 20 An example of an activity cost pool is a. number of inspections b. setting up machines c. number of setups d. machine hours.
Solution Description

Question 1

A major purpose of cost accounting is to

a. classify all costs as operating or nonoperating.

b. measure, record, and report period costs.

c. provide information to stockholders for investment decisions.

d. measure, record, and report product costs.

Question 2

The two basic types of cost accounting systems are

a. job order and job accumulation systems.

b. job order and process cost systems.

c. process cost and batch systems.

d. job order and batch systems
Question 3

A process cost system would most likely be used by a company that makes

a. motion pictures.

b. repairs to automobiles.

c. breakfast cereal.

d. college graduation announcements.
Question 4

Which of the following would be accounted for using a job order cost system?

a. The production of personal computers.

b. The production of automobiles.

c. The refining of petroleum.

d. The construction of a new campus building
Question

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