Case Study
Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
3: Chapter Product Costing and Cost Accumulation in a Batch Production Environment
MULTIPLE CHOICE QUESTIONS
1. Product costing in a manufacturing firm is the process of: A. accumulating the company's period costs. B. allocating costs among the firm's departments. C. placing a value on the company's fixed assets. D. assigning costs to the firm's inventory. E. assigning costs to the company's managers. Answer: D LO: 1 Type: RC
2. Which of the following statements is true? A. Service firms have little need for determining the cost of their services. B. The concept of product costing is relevant only for manufacturing firms. C. The cost of year-end inventory appears on the balance sheet as an expense. D. Service companies use cost information for planning and control purposes. E. Mining and petroleum companies have no inventoriable costs. Answer: D LO: 1 Type: RC
3. Which of the following manufacturers would most likely use job-order costing? A. Chemical manufacturers. B. Microchip processors. C. Custom-furniture manufacturers. D. Gasoline refiners. E. Fertilizer manufacturers. Answer: C LO: 3 Type: RC
4. A custom-home builder would likely utilize: A. job-order costing. B. process costing. C. mass customization. D. process budgeting. E. joint costing. Answer: A LO: 3 Type: RC
5. Which of the following types of companies would most likely use process costing? A. Aircraft manufacturers. B. Textile manufacturers. C. Textbook publishers. D. Custom-machining firms. E. Shipbuilders. Answer: B LO: 3 Type: RC Managerial Accounting, Seventh Edition 48
6. A
Course Hero has millions of student submitted documents similar to the one below including study guides, practice problems, reference materials, practice exams, textbook help and tutor support.
3: Chapter Product Costing and Cost Accumulation in a Batch Production Environment
MULTIPLE CHOICE QUESTIONS
1. Product costing in a manufacturing firm is the process of: A. accumulating the company's period costs. B. allocating costs among the firm's departments. C. placing a value on the company's fixed assets. D. assigning costs to the firm's inventory. E. assigning costs to the company's managers. Answer: D LO: 1 Type: RC
2. Which of the following statements is true? A. Service firms have little need for determining the cost of their services. B. The concept of product costing is relevant only for manufacturing firms. C. The cost of year-end inventory appears on the balance sheet as an expense. D. Service companies use cost information for planning and control purposes. E. Mining and petroleum companies have no inventoriable costs. Answer: D LO: 1 Type: RC
3. Which of the following manufacturers would most likely use job-order costing? A. Chemical manufacturers. B. Microchip processors. C. Custom-furniture manufacturers. D. Gasoline refiners. E. Fertilizer manufacturers. Answer: C LO: 3 Type: RC
4. A custom-home builder would likely utilize: A. job-order costing. B. process costing. C. mass customization. D. process budgeting. E. joint costing. Answer: A LO: 3 Type: RC
5. Which of the following types of companies would most likely use process costing? A. Aircraft manufacturers. B. Textile manufacturers. C. Textbook publishers. D. Custom-machining firms. E. Shipbuilders. Answer: B LO: 3 Type: RC Managerial Accounting, Seventh Edition 48
6. A