Question 1

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would most likely be a product cost?

Accepted Answer

A)  Salary of VP of sales
B)  Advertising for a particular product
C)  Drill bits for a drill press used in the plant assembly area
D)  Salary of the company receptionistE) A) and B)
F) A) and C)

Question 3

Each account in the work in process subsidiary ledger is called a

Accepted Answer

A)  finished goods sheet.
B)  stock record.
C)  materials requisition.
D)  job cost sheet.E) None of the above
F) C) and D)

Question 4

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would probably NOT be found in the accounting system of a service provider?

Accepted Answer

A)  Cost ledger
B)  Finished goods ledger
C)  Cost of services account
D)  Job cost sheetsE) All of the above
F) A) and B)

Question 6

Job order cost accounting systems can be used only for companies that manufacture a product.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is NOT true about why a service firm will use the job order costing system?

Accepted Answer

A)  To help control costs
B)  To determine client billing
C)  To determine department costs within the firm
D)  To determine profitE) A) and B)
F) B) and C)

Question 8

Use the correct number to designate each item below:
(1) direct matrials
(2) selling and administrative expenses
(3) factory overhead
(4) direct labor

Accepted Answer

The answer of Use the correct number to designate each...

Question 9

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Accepted Answer

A)  moving a product from process to process as each function is completed.
B)  combining processing functions into work centers and cross-training workers to perform more than one function.
C)  having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating.
D)  having workers typically perform one function on a continuous basis.E) C) and D)
F) A) and C)

Question 10

Which of the following statements is TRUE regarding lead time?

Accepted Answer

A)  Total lead time can be divided into acceptable and non-acceptable lead time.
B)  Lead time is a measure of time that elapses between the sale of a product and delivery to the customer.
C)  Reducing nonvalue-added lead time reduces costs and improves the speed of production.
D)  Reducing nonacceptable lead time improves the speed of production,but will not affect product cost.E) A) and B)
F) A) and C)

Question 11

Factory overhead is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 12

Indirect labor would be included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 13

For which of the following businesses would the process cost system be appropriate?

Accepted Answer

A)  Custom cabinet manufacturer
B)  Dress designer
C)  Lumber mill
D)  Printing firmE) C) and D)
F) A) and D)

Question 14

The recording of the jobs completed would decrease

Accepted Answer

A)  Factory Overhead.
B)  Finished Goods.
C)  Work in Process.
D)  Cost of Goods Sold.E) A) and C)
F) B) and D)

Question 15

Sales commissions is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Accepted Answer

A)  increase Work in Process,decrease Materials Inventory.
B)  increase Materials,decrease Work in Process.
C)  increase Factory Overhead,decrease Materials Inventory.
D)  increase Work in Process,decrease Supplies.E) All of the above
F) A) and D)

Exam 10: Accounting Systems for Manufacturing Businesses

Which of the following would most likely be a product cost?

Correct Answer
verified

Which of the following would probably NOT be found in the accounting system of a service provider?

Correct Answer
verified

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Correct Answer
verified

For which of the following businesses would the process cost system be appropriate?

Correct Answer
verified

The recording of the jobs completed would decrease

Correct Answer
verified

Job order cost accounting systems can be used only for companies that manufacture a product.

Correct Answer
verified

Use the correct number to designate each item below: (1) direct matrials (2) selling and administrative expenses (3) factory overhead (4) direct labor

Correct Answer
verified

Factory overhead is an example of a product cost.

Correct Answer
verified

Sales commissions is an example of factory overhead cost.

Correct Answer
verified

Which of the following statements is TRUE regarding lead time?

Correct Answer
verified

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Correct Answer
verified

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Correct Answer
verified

Which of the following is NOT true about why a service firm will use the job order costing system?

Correct Answer
verified

Each account in the work in process subsidiary ledger is called a

Correct Answer
verified

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Correct Answer
verified

Indirect labor would be included in factory overhead.

Correct Answer
verified

Exam 10: Accounting Systems for Manufacturing Businesses

Which of the following would most likely be a product cost?

Correct AnswerverifiedShow Answer

Which of the following would probably NOT be found in the accounting system of a service provider?

Correct AnswerverifiedShow Answer

In a job order cost accounting system,the effect of the flow of direct materials into production is to

Correct AnswerverifiedShow Answer

For which of the following businesses would the process cost system be appropriate?

Correct AnswerverifiedShow Answer

The recording of the jobs completed would decrease

Correct AnswerverifiedShow Answer

Job order cost accounting systems can be used only for companies that manufacture a product.

Correct AnswerverifiedShow Answer

Use the correct number to designate each item below: (1) direct matrials (2) selling and administrative expenses (3) factory overhead (4) direct labor

Correct AnswerverifiedShow Answer

Factory overhead is an example of a product cost.

Correct AnswerverifiedShow Answer

Sales commissions is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

Which of the following statements is TRUE regarding lead time?

Correct AnswerverifiedShow Answer

If the cost of employee wages is NOT a significant portion of the total product cost,the wages are classified as factory overhead cost.

Correct AnswerverifiedShow Answer

Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality.One of the ways in which this is accomplished in manufacturing and nonmanufacturing processes is by:

Correct AnswerverifiedShow Answer

Which of the following is NOT true about why a service firm will use the job order costing system?

Correct AnswerverifiedShow Answer

Each account in the work in process subsidiary ledger is called a

Correct AnswerverifiedShow Answer

The costs of materials and labor that do NOT enter directly into the finished product are classified as cost of goods sold.

Correct AnswerverifiedShow Answer

Indirect labor would be included in factory overhead.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified