Which Of The Following Organizations Would Be Most Likely To Use Job-Order Costing System?
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Chapter 5—Job Order Costing
MULTIPLE CHOICE
1. Which of the following organizations would be most likely to use a job-order costing system? a. | the loan department of a bank | b. | the check clearing department of a bank | c. | a manufacturer of processed cheese food | d. | a manufacturer of video cassette tapes |
ANS: A PTS: 1 DIF: Moderate OBJ: 5-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
2. When job-order costing is used, the primary focal point of cost accumulation is the a. | department. | b. | supervisor. | c. | item. | d. | job. |
ANS: D PTS: 1 DIF: Easy OBJ: 5-1 …show more content…
| expensive to install, but easier to use. |
ANS: C PTS: 1 DIF: Easy OBJ: 5-5 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
44. The use of standard material or labor costs in job-order costing a. | is similar to the use of predetermined overhead rates in a normal costing system. | b. | will keep actual costs of jobs from fluctuating due to changes in component costs. | c. | is appropriate for any company making units to customer specification. | d. | all answers are correct. |
ANS: A PTS: 1 DIF: Easy OBJ: 5-6 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
45. Which of the following statements is false? a. | While the use of standard costing is acceptable for job-order costing systems, actual cost records should still be maintained. | b. | It is normally more time-consuming for a company to use standard costs in a job-order costing system. | c. | Standards can be used in a job-order costing system, if the company usually produces items that are similar in nature. | d. | Standard costs may be used for material, labor, or both material and labor in a job-order costing environment.
Chapter 5—Job Order Costing
MULTIPLE CHOICE
1. Which of the following organizations would be most likely to use a job-order costing system? a. | the loan department of a bank | b. | the check clearing department of a bank | c. | a manufacturer of processed cheese food | d. | a manufacturer of video cassette tapes |
ANS: A PTS: 1 DIF: Moderate OBJ: 5-1 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
2. When job-order costing is used, the primary focal point of cost accumulation is the a. | department. | b. | supervisor. | c. | item. | d. | job. |
ANS: D PTS: 1 DIF: Easy OBJ: 5-1 …show more content…
| expensive to install, but easier to use. |
ANS: C PTS: 1 DIF: Easy OBJ: 5-5 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
44. The use of standard material or labor costs in job-order costing a. | is similar to the use of predetermined overhead rates in a normal costing system. | b. | will keep actual costs of jobs from fluctuating due to changes in component costs. | c. | is appropriate for any company making units to customer specification. | d. | all answers are correct. |
ANS: A PTS: 1 DIF: Easy OBJ: 5-6 NAT: AACSB: Reflective Thinking LOC: AICPA Functional Competencies: Measurement, Reporting
45. Which of the following statements is false? a. | While the use of standard costing is acceptable for job-order costing systems, actual cost records should still be maintained. | b. | It is normally more time-consuming for a company to use standard costs in a job-order costing system. | c. | Standards can be used in a job-order costing system, if the company usually produces items that are similar in nature. | d. | Standard costs may be used for material, labor, or both material and labor in a job-order costing environment.