2023 Question 1 of 20 5 0 Points Which of the following products probably would be manufactured using a job | Assignments Online

Question 1 of 20    5.0 Points
Which of the following products probably would be manufactured using a job order costing system?
    A. Paper   
    B. Baseball cards   
    C. Computer monitors   
    D. Company business cards   
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Question 2 of 20    5.0 Points
Applied overhead exceeds actual overhead when the:
    A. Overhead account has a credit balance.   
    B. journal entry to account for the difference involves a debit to Cost of Goods Sold.   
    C. Overhead account has a debit balance.   
    D. company has overspent in the overhead cost area.   
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Question 3 of 20    5.0 Points
The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
    A. cost of goods completed.   
    B. balance in the Finished Goods Inventory account.   
    C. Cost of Goods Sold account.   
    D. balance in the Work in Process Inventory account.   
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Question 4 of 20    5.0 Points
The basic document for keeping track of costs in a job order costing system is a:
    A. job order cost card.   
    B. labor time card.   
    C. process cost report.   
    D. materials requisition form.   
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Question 5 of 20    5.0 Points
When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
    A. Overhead.   
    B. Work in Process Inventory.   
    C. Materials Inventory.   
    D. Finished Goods Inventory.   
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Question 6 of 20    5.0 Points
Unit costs for each job are computed by dividing:
    A. estimated total costs by planned units to be produced.   
    B. actual costs by actual units sold.   
    C. cost of materials, direct labor, and overhead by number of units produced.   
    D. estimated total costs by actual units produced.   
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Question 7 of 20    5.0 Points
In cost-plus contracts, the “plus” represents:
    A. sales price.   
    B. profit, based on the amount of costs incurred.   
    C. overapplied overhead costs.   
    D. the amount of any cost overruns.   
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Question 8 of 20    5.0 Points
The balance in the Work in Process Inventory account equals the:
    A. balance in the Finished Goods inventory account.   
    B. balance in the Cost of Goods Sold account.   
    C. total of the balances on the job order cost sheets of uncompleted jobs.   
    D. balance in the Overhead account.   
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Question 9 of 20    5.0 Points
Which of the following entities probably would use a process costing system?
    A. An oil refinery   
    B. A yacht builder   
    C. A custom furniture company   
    D. A custom screw manufacturer   
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Question 10 of 20    5.0 Points
Process costing is applicable to production operations that:
    A. utilize several processes, departments, or work cells in a series.   
    B. do not assign overhead costs to operations.   
    C. produce large and unique machines.   
    D. are found in only a few industries.   
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Question 11 of 20    5.0 Points
Which of the following accurately describes a difference between job order and process costing systems?
    A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.   
    B. Job order costing systems do not need to assign costs to production, whereas process costing systems do.   
    C. In job order costing systems, costs are traced to products, whereas in process costing systems, a FIFO method may be used.   
    D. Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems.   
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Question 12 of 20    5.0 Points
The reason for combining direct labor and overhead costs together and calling them “conversion costs” is that:
    A. they both are direct costs of production.   
    B. the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.   
    C. both types of costs usually are incurred uniformly throughout the production process.   
    D. the costs for direct labor and overhead are not accounted for separately.   
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Question 13 of 20    5.0 Points
Which of the following statements is true?
    A. The Work in Process Inventory account is the focal point of process costing.   
    B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.   
    C. Equivalent units usually are computed for direct materials and manufacturing overhead combined.   
    D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system.   
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Question 14 of 20    5.0 Points
Equivalent units of production usually are determined for:
    A. direct materials only.   
    B. direct materials and conversion costs.   
    C. direct materials and direct labor costs only.   
    D. conversion costs only.   
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Question 15 of 20    5.0 Points
Measures of equivalent production are necessary in process costing because:
    A. job order costing procedures cannot be applied.   
    B. unit costs are computed by departments or processes at fixed time intervals.   
    C. perpetual inventories are not employed in process plants.   
    D. production methods are more complex than in job order costing systems.   
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Question 16 of 20    5.0 Points
Which of the following applies to process costing but NOT to job order costing?
    A. Only one Work in Process Inventory account   
    B. Equivalent production units   
    C. Production of unique items   
    D. Multiple unit job order   
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Question 17 of 20    5.0 Points
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
    A. is a little easier to work with.   
    B. is more accurate.   
    C. costs less to utilize.   
    D. requires little knowledge of process costing.   
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Question 18 of 20    5.0 Points
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
    A. ending work in process inventory.   
    B. ending finished goods inventory.   
    C. beginning finished goods inventory.   
    D. beginning work in process inventory.   
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Question 19 of 20    5.0 Points
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
    A. by costs from the current period.   
    B. into costs from the current period.   
    C. into total costs to be accounted for.   
    D. by total costs to be accounted for.   
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Question 20 of 20    5.0 Points
Which of the following statements about a department’s costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
    A. They could be higher or lower.   
    B. They would be the same.   
    C. They would be lower.   
    D. They would be higher.   

Question 1 of 20    5.0 Points
Customer relations are usually part of:
    A. the supply chain.   
    B. the value chain.   
    C. both the value chain and the supply chain.   
    D. neither the value chain nor the supply chain.   
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Question 2 of 20    5.0 Points
Which of the following statements is true?
    A. A company’s value chain is not part of its supply chain.   
    B. A manufacturer’s supply chain typically includes research and development and customer service.   
    C. A company’s supply chain includes the value chains of its suppliers.   
    D. Your supplier’s suppliers are part of your value chain.   
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Question 3 of 20    5.0 Points
Process value analysis (PVA) identifies all activities of a production and/or assembly operation for the purpose of:
    A. preparing budgets based on activity centers.   
    B. determining the value of the process.   
    C. replacing cost drivers used in cost assignment analyses with activities.   
    D. relating cost assignment to the activities that caused the cost to be incurred.   
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Question 4 of 20    5.0 Points
A nonvalue-adding activity is defined as a(n):
    A. administrative or support activity that adds overhead cost to the product and increases its market value.   
    B. activity that adds cost to a product but does not increase its market value.   
    C. activity that adds no cost to the product but increases its market value.   
    D. wasteful but unavoidable production activity.   
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Question 5 of 20    5.0 Points
Product unit costs computed using activity-based costing compared to product unit costs computed using a traditional costing approach will:
    A. sometimes be the same.   
    B. always be higher.   
    C. always be the same.   
    D. always be lower.   
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Question 6 of 20    5.0 Points
A framework for classifying value-adding and nonvalue-adding activities according to the level at which their costs are incurred is called a:
    A. bill of activities.   
    B. full product cost.   
    C. value chain.   
    D. cost hierarchy.   
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Question 7 of 20    5.0 Points
Which one of the four levels of the cost hierarchy would be used by a dress manufacturer that uses activity-based management for sewing seams on a garment?
    A. Unit-level activity   
    B. Batch-level activity   
    C. Product-level activity   
    D. Facility-level activity   
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Question 8 of 20    5.0 Points
The initial step in achieving the efficiency of a just-in-time system is to:
    A. redesign the plant layout.   
    B. replace laborers with machines.   
    C. stop ordering materials for inventory.   
    D. identify products that are not profitable.   
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Question 9 of 20    5.0 Points
Backflush costing aims at reducing waste in the:
    A. accounting system.   
    B. cost of goods sold.   
    C. storage of raw materials.   
    D. production process.   
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Question 10 of 20    5.0 Points
The typical relationship between variable costs and volume may be described best as which of the following?
    A. Costs increase in an erratic, unpredictable fashion with changes in volume.   
    B. Costs stay fairly constant with changes in volume.   
    C. Costs increase with changes in volume up to a certain point and then remain constant.   
    D. Costs increase in direct proportion to increases in volume.   
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Question 11 of 20    5.0 Points
The variable cost per unit __________ as the number of sales increase.
    A. decreases   
    B. changes   
    C. remains constant   
    D. increases   
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Question 12 of 20    5.0 Points
The level of operating capacity that is needed to meet expected sales demand is called:
    A. practical capacity.   
    B. normal capacity.   
    C. ideal capacity.   
    D. excess capacity.   
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Question 13 of 20    5.0 Points
Theoretical capacity reduced by normal and anticipated work stoppages is called:
    A. practical capacity.   
    B. normal capacity.   
    C. ideal capacity.   
    D. excess capacity.   
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Question 14 of 20    5.0 Points
Theoretical capacity refers to:
    A. extra machinery and equipment kept on hand.   
    B. the maximum productive output possible.   
    C. an output level that allows for normal work stoppages.   
    D. the operating capacity that will meet expected sales demand.   
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Question 15 of 20    5.0 Points
The high-low method:
    A. calculates variable costs per unit by dividing the difference in the high and low activity levels by the high and low costs.   
    B. assumes that the fixed portion of the mixed cost is the lowest monthly cost incurred during the period under consideration.   
    C. allows differentiation between fixed and variable costs when dealing with mixed costs.   
    D. combines the fixed and variable portions of a cost to determine the total cost.   
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Question 16 of 20    5.0 Points
The equation for finding the breakeven point may be written as:
    A. S – VC – FC = 0.   
    B. VC – FC = S.   
    C. S + FC = VC.   
    D. S + VC + FC = 0.   
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Question 17 of 20    5.0 Points
The breakeven point is:
    A. where fixed and variable costs reach the upper level of the relevant range.   
    B. the level of activity where all fixed costs are recovered.   
    C. where total revenue equals total costs.   
    D. where fixed costs meet variable costs.   
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Question 18 of 20    5.0 Points
The equation that will provide the breakeven point in units (SP = selling price) is:
    A. BE units = (SP – VC) ÷ FC per unit.   
    B. VC per unit + FC = SP per unit x BE units.   
    C. BE units = FC ÷ CM per unit.   
    D. SP per unit – VC per unit = FC ÷ BE units.   
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Question 19 of 20    5.0 Points
Contribution margin equals sales minus:
    A. cost of goods sold.   
    B. total costs.   
    C. fixed costs.   
    D. variable costs.   
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Question 20 of 20    5.0 Points
For every unit that a company produces and sells above the breakeven point, its profitability is improved (ignoring taxes) by the unit’s:
    A. gross margin.   
    B. selling price minus fixed cost.   
    C. variable cost.   
    D. contribution margin.   
Question 1 of 20    5.0 Points
A purpose of standard costing is to:
    A. control costs.   
    B. allocate costs more accurately.   
    C. replace subjective decision making.   
    D. compute the breakeven point.   
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Question 2 of 20    5.0 Points
A(n) __________ cost is synonymous with the product cost calculated in a conventional standard cost accounting system.
    A. fixed   
    B. direct   
    C. joint   
    D. expected   
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Question 3 of 20    5.0 Points
An expression of the hourly labor pay cost per function or job classification that is expected to exist during the next accounting period is the definition of a:
    A. direct labor time standard.   
    B. direct materials quantity standard.   
    C. direct labor rate standard.   
    D. variable overhead rate.   
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Question 4 of 20    5.0 Points
Multiplying the standard price of direct materials by the standard quantity for direct materials yields:
    A. the direct materials price variance.   
    B. the direct materials quantity variance.   
    C. the standard direct materials cost.   
    D. nothing; the two components should be added together.   
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Question 5 of 20    5.0 Points
Which of the following provides an explanation of why the variable overhead rate is separated from the fixed overhead rate in standard costing?
    A. There is no justifiable reason; their separation is merely to simplify entries.   
    B. Both calculations divide by the same direct labor hours, but the numerator is different for each calculation.   
    C. The variable overhead rate is calculated using actual direct labor hours, whereas the fixed overhead rate is calculated using normal capacity direct labor hours.   
    D. Different application bases are generally appropriate.   
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Question 6 of 20    5.0 Points
The primary difference between a fixed (static) budget and a flexible budget is that a fixed budget:
    A. cannot be changed after the period begins, whereas a flexible budget can be changed after the period begins.   
    B. is concerned only with future acquisitions of fixed assets, whereas a flexible budget is concerned with expenses that vary with sales.   
    C. is a plan for a single level of production, whereas a flexible budget is several plans (one for each of several production levels).   
    D. includes only fixed costs, whereas a flexible budget includes only variable costs.   
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Question 7 of 20    5.0 Points
The formula used to compute budgeted total cost at any level of activity is presented in the:
    A. flexible budget.   
    B. performance report.   
    C. static budget.   
    D. cash flow forecast.   
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Question 8 of 20    5.0 Points
The difference between the standard quantity allowed and the actual quantity used multiplied by standard price is the equation for computing the:
    A. direct labor efficiency variance.   
    B. direct materials price variance.   
    C. direct labor rate variance.   
    D. direct materials quantity variance.   
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Question 9 of 20    5.0 Points
The overhead variance is equal to the difference between:
    A. fixed overhead costs and flexible overhead costs.   
    B. estimated overhead rate and applied overhead rate.   
    C. actual overhead costs and variable overhead costs.   
    D. actual overhead costs and standard overhead costs.   
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Question 10 of 20    5.0 Points
A favorable fixed overhead volume variance for a manufacturing company could indicate:
    A. the creation of excess inventory.   
    B. the actual overhead exceeded the budgeted overhead.   
    C. sales exceeded production.   
    D. variable overhead costs were less than fixed overhead costs.   
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Question 11 of 20    5.0 Points
Irrelevant costs include costs that are:
    A. different among alternatives.   
    B. avoidable.   
    C. sunk.   
    D. opportunity costs.   
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Question 12 of 20    5.0 Points
The difference in total costs between two alternatives is referred to as the:
    A. direct cost.   
    B. incremental cost.   
    C. sunk cost.   
    D. opportunity cost.   
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Question 13 of 20    5.0 Points
The purpose of incremental analysis is to find the alternative:
    A. that contributes the most to operating income.   
    B. that brings in the most revenue.   
    C. with the lowest fixed costs.   
    D. with the fewest relevant costs.   
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Question 14 of 20    5.0 Points
In a special-order decision, which of the following costs would normally be irrelevant?
    A. Packaging costs   
    B. Direct labor   
    C. Variable overhead   
    D. Fixed selling expenses   
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Question 15 of 20    5.0 Points
Avoidable costs are important for:
    A. product mix decisions.   
    B. sell or process-further decisions.   
    C. decisions to eliminate unprofitable segments.   
    D. pricing decisions for special orders.   
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Question 16 of 20    5.0 Points
Direct costs include:
    A. all product costs.   
    B. variable product costs.   
     C. some identifiable fixed costs and variable product costs.   
     D. some identifiable fixed costs.   
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Question 17 of 20    5.0 Points
As a general rule, a segment should not be eliminated if:
    A. the company is profitable.   
    B. its direct fixed costs exceed its contribution margin.   
    C. the segment’s fixed costs equal its variable costs.   
    D. its contribution margin exceeds direct fixed costs.   
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Question 18 of 20    5.0 Points
The point at which products are separated in a joint production process is the:
    A. split-off point.   
    B. joint product point.   
    C. separation point.   
    D. breakeven point.   
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Question 19 of 20    5.0 Points
Relevant costs in a sell or process-further decision include:
    A. costs of additional processing.   
    B. both additional revenues and additional costs.   
    C. revenues after additional processing.   
    D. joint product costs.   
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Question 20 of 20    5.0 Points
The objective of the sell or process-further decision is to:
    A. maximize production.   
    B. maximize joint costs.   
    C. minimize processing.   
    D. maximize operating income.