Test Bank for Introduction to Managerial Accounting 5th Edition Brewer, Garrison, Noreen
19 views 0 purchase
Course
Introduction to Managerial Accounting
Institution
Introduction To Managerial Accounting
Book
Managerial Accounting for Managers
Chapter 02
Systems Design: Job-Order Costing
True / False Questions
1. Job-order costing would be more likely to be used than process costing in situations where
many different products or services are produced each period to customer specifications.
True False
2. In a job-order costing syste...
test bank for introduction to managerial accounting 5th edition brewer
job order costing would be more likely to be used than process costing in situations where many different produ
Connected book
Book Title:
Author(s):
Edition:
ISBN:
Edition:
More summaries for
Test Bank for Managerial Accounting for Managers 5th Edition By Noreen.pdf
TEST BANK FOR INTRODUCTION TO MANAGERIAL ACCOUNTING FIFTH CANADIAN EDITION
All for this textbook (3)
Written for
Introduction to Managerial Accounting
Introduction to Managerial Accounting
Introduction to Managerial Accounting
All documents for this subject (20)
Seller
Follow
Classroom
Reviews received
Content preview
Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-5th-Edition-Brewer,-
Garrison,-Noreen
2-1
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-5th-Edition-Brewer,-
Garrison,-Noreen
Chapter 02
Systems Design: Job-Order Costing
True / False Questions
1. Job-order costing would be more likely to be used than process costing in situations where
many different products or services are produced each period to customer specifications.
True False
2. In a job-order costing system, costs are traced to departments and then allocated to units of
product using an average process.
True False
3. Job-order costing is used in those situations where units of a product are homogeneous,
such as in the manufacture of sugar.
True False
4. Job-order costing is usually not used in service organizations such as hospitals and law
firms.
True False
5. The three cost categories appearing on a job cost sheet are: selling expense, manufacturing
expense, and administrative expense.
True False
6. The labor time ticket contains the details of how much time an employee takes on each task
throughout the day.
True False
2-2
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-5th-Edition-Brewer,-
Garrison,-Noreen
7. In order to improve the accuracy of unit costs, most companies recompute the
predetermined overhead rate each month.
True False
8. Use of a single, plantwide overhead rate is generally appropriate only for very large
manufacturing companies.
True False
9. Predetermined overhead rates are based on actual cost and activity data.
True False
10. The following journal entry would be made to apply overhead cost to jobs in a job-order
costing system:
True False
11. When completed goods are sold, the transaction is recorded as a debit to Cost of Goods
Sold and a credit to Work in Process.
True False
12. When the predetermined overhead rate is based on direct labor-hours, the amount of
overhead applied to a job is proportional to the amount of actual direct labor-hours incurred
on the job.
True False
13. Actual manufacturing overhead costs are traced to specific jobs.
True False
2-3
, Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-5th-Edition-Brewer,-
Garrison,-Noreen
14. A credit balance in the Manufacturing Overhead account at the end of the year means that
overhead was underapplied.
True False
15. The sum of all amounts transferred from the Work in Process account and into the
Finished Goods account represents the Cost of Goods Manufactured for the period.
True False
16. The most common accounting treatment of underapplied manufacturing overhead is to
transfer it to the Manufacturing Overhead control account.
True False
Multiple Choice Questions
17. Which of the following companies would be most likely to use a job-order costing system
rather than a process costing system?
A. fast food restaurant
B. shipbuilding
C. crude oil refining
D. candy making
18. Computing unit product costs involves averaging in:
A. A
B. B
C. C
D. D
2-4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Classroom. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $15.49. You're not tied to anything after your purchase.
