14) Which of the following is a product cost?

A) Direct material costs

B) Selling costs

C) Distribution costs

D) Administrative costs

15) Which of the following industries is most likely to NOT use a job-order costing system?

A) Construction

B) Chemicals

C) Aircraft

D) Printing

16) Which of the following industries is most likely to NOT use a process costing system?

A) Chemicals

B) Plastics

C) Furniture

D) Meat packing

17) A unique individual product would be better accounted for using a

A) process costing system.

B) period costing system.

C) product costing system.

D) job-order costing system.

18) Which of the following statements regarding process costing is FALSE?

A) Process costing deals with great masses of like units.

B) Process costing is an averaging process.

C) In process costing the measure of production is small, whereas in job-order costing the measure of production is large.

D) Process costing is one of the extremes of product costing.

19) The centrepiece of a job-costing system is the

A) materials requisition form.

B) job-cost record.

C) labour time ticket.

D) budgeted overhead rate.

20) Material requisitions are used for recording

A) materials purchased.

B) materials issued and used in production.

C) materials on hand in the storeroom.

D) none of the above

21) A department that is equipment intensive would most likely use a budgeted factory overhead rate based on which of the following cost drivers:

A) machine hours

B) direct labour hours

C) direct labour cost

D) units of direct labour used

22) Budgeted factory overhead rates are calculated as

A) budgeted total overhead/budgeted total activity.

B) estimated total overhead/actual total activity.

C) actual total overhead/actual total activity.

D) actual total overhead/estimated total activity.

23) The overhead costs of a given period might appear in all of the following EXCEPT

A) materials inventory.

B) work in process.

C) finished goods.

D) cost of goods sold.



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