Review Questions Flashcards
0
Q
In a process costing system, manufacturing overhead is usually recorded as a debit to: A. Finished Goods B. Work in Process C. Manufacturing Overhead D. COGS
A
B. Work in Process
1
Q
A machining part of a car axle is an example of: A. Unit level B. Product level C. Batch level D. Facility level
A
A. Unit level
2
Q
What document is used to determine the actual amount of direct labor to record on a job cost sheet?
A
time ticket
3
Q
Personnel administration is an example of: A. Unit-level B. Batch-level C. Product-level D. Facility-level
A
D. Facility-level
4
Q
Providing the power required to run production equipment is an example of: A. Unit-level B. Batch-level C. Product-level D. Facility-level
A
A. Unit-level
5
Q
Product engineering is an example of: A. Unit-level B. Batch-level C. Product-level D. Facility-level
A
C. Product-level
6
Q
Would plant security and assembly activities be best classified at an appliance manufacturing plant as: A. Unit-level B. Batch-level C. Product-level D. Facility-level
A
D. Facility-level
7
Q
A company should use process costing rather than job order costing, if:
A
the product is composed of mass-produced homogeneous units
8
Q
For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:
A
period cost
9
Q
The term “relevant range” means the range of activity over which:
A
the assumptions about fixed and variable cost behavior are reasonably valid
