Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Management Accounting Study Set 6

Business

Quiz 7 :

Job and Process Costing Systems

Quiz 7 :

Job and Process Costing Systems

search
arrow
GAAP requires a product cost for finished goods inventory only.
Free
True False
Answer:

Answer:

False

arrow
An example of a source document in a job costing system is a materials requisition form.
Free
True False
Answer:

Answer:

True

arrow
An allocation base is chosen for each department in job costing.
Free
True False
Answer:

Answer:

False

arrow
A period cost is expensed directly to the statement of profit or loss in the period in which they occur.
True False
Answer:
arrow
An architect is a business which is likely to use job costing.
True False
Answer:
arrow
Non-manufacturing costs are treated as period costs.
True False
Answer:
arrow
Organisations can use single or multiple overhead cost pools.
True False
Answer:
arrow
When the nature or level of overhead differs across activities or departments the organisation should use a single overhead cost pool.
True False
Answer:
arrow
Job costing uses subsidiary ledgers to track the costs of individual jobs.
True False
Answer:
arrow
In job costing, direct materials are traced to the job while direct labour and manufacturing overhead are allocated to the job.
True False
Answer:
arrow
Cost of sales is shown in the statement of financial position.
True False
Answer:
arrow
Goods that are in production but not yet complete are classified as work in process.
True False
Answer:
arrow
Inventoriable product costs consist of the direct and indirect costs of producing goods.
True False
Answer:
arrow
Selling and administrative costs are indirect costs that are included in the inventoriable product cost.
True False
Answer:
arrow
Job costing is the process of assigning costs to custom products where the cost object is the individual job.
True False
Answer:
arrow
A job can be an individual product or a batch of products.
True False
Answer:
arrow
Variable overhead includes costs such as management salaries and insurance.
True False
Answer:
arrow
Prime costs are direct labour and direct material.
True False
Answer:
arrow
Inventory is reported at cost in the statement of financial position.
True False
Answer:
arrow
Manufacturing overhead includes all production costs except direct materials and direct labour.
True False
Answer:
Showing 1 - 20 of 154