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Cost Accounting Foundations and Evolutions 10th Edition Kinney
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Cost Accounting Foundations and Evolutions 10th Edition Kinney
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Test Bank For Cost Accounting Foundations and Evolutions 10th Edition by Kinney, Raiborn, Dragoo 9781618533531 Chapter 1-19 Complete Guide.
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Test Bank For Cost Accounting Foundations and Evolutions10th Edition Kinney
for job costing in service industries, overhead costs are usually applied to jobs based
on: - ANSWER: direct labor-hours or dollars
a time ticket - ANSWER: shows the time an employee worked on each job, the pay
rate, and the total cost chargeable to each job
what is the amount that actual factory overhead exceeds the factory overhead
applied? - ANSWER: underapplied overhead
what industry is often suitable for applying operation costing - ANSWER: electronic
equipment
the predetermined factory overhead rate includes - ANSWER: estimated total
amount of cost driver
some firms pool overhead into a single plantwide overhead pool, while others
accumulate overhead costs into manufacturing departments, each of which has an
overhead cost pool and overhead cost application rate. Which approach is likely to
provide more accurate cost numbers for cost estimating, pricing, and performance
evaluation? - ANSWER: departmental rate
when completed units are sold - ANSWER: finished goods inventory account is
credited
standard costs are - ANSWER: planned costs the firm should attain
the ideal criterion for choosing an allocation base for overhead is - ANSWER: a cause
and effect relationship
operation costing is a hybrid costing system for products and services that uses -
ANSWER: job costing for direct materials costs and process costing for conversion
cost
what type of firm is most likely to require a very accurate costing system - ANSWER:
a firm in a competitive environment
job costing in service firms uses recording procedures and accounts similar to those
for manufacturing companies except for those regarding - ANSWER: direct materials
with the increase in competition over the past several years and the need for
additional accuracy in product costing, traditional cost accounting systems have
,become less common in product costing because - ANSWER: they use volume-based
cost drivers
departmental overhead rates are preferred over plantwide rates when - ANSWER:
the products use different amounts of different processes in different departments
scrap can be classified as - ANSWER: specific job
common to all jobs
cost system design/selection should consider all except what - ANSWER: customer
needs
cost system design/selection should consider - ANSWER: -cost/benefit of system
design/selection and operation
-a firms strategy and management information needs
-nature of the industry, product, or service
an activity that is performed for each unit of production is an - ANSWER: unit-level
activity
what is not considered a benefit of activity-based costing - ANSWER: decreased
production activity levels
benefits of activity-based costing - ANSWER: -improved understanding of cost of
capacity
-a better understanding of processes
-improved planning
-improved strategic decisions
the cost to process monthly statements is an example of a - ANSWER: customer-
sustaining cost
what is not a low value-added activity - ANSWER: processing
low-value-added activities - ANSWER: -reworking
-moving
-inspection
-warranty service
freight charges based on number of units shipped to customers is a - ANSWER:
customer unit-level cost
an adaptation of ABC costing that simplifies ABC by assigning resource costs directly
to cost objects is called - ANSWER: time-driven abc
what is not a unit-level cost driver - ANSWER: production orders
, what is considered a unit-level cost driver - ANSWER: -direct labor hours
-machine hours
-direct material dollars
what is an example of a high-value-added activity - ANSWER: shipping the customers
order
what is most likely to be the cost driver for the packaging and shipping activity -
ANSWER: number of orders
a firm has many products, some produced in an automated production process and
some produced in a manual production process. Using direct labor hours to assign
manufacturing overhead to a product manufactured with a highly automated
process is likely to - ANSWER: understate overhead of the product
in an activity-based costing system, overhead costs are divided into separate -
ANSWER: activity cost pools
what is the weakest linkage between activity and cost driver - ANSWER: model:
quality control
cost: square feet of floor space
the journal entry to record finished product units would include a debit to -
ANSWER: finished goods inventory
in a process costing system, the cost of abnormal spoilage should be - ANSWER:
treated as a loss in the period incurred
what is one the key steps in determining process costs - ANSWER: -assigning the
total manufacturing costs to the units completed and transferred out and the units
of work in process at the end of the period
-analyzing the physical flow of production units
-computing the cost per equivalent unit for each manufacturing cost element
-calculating equivalent units of production for all manufacturing cost elements
the journal entry to record incurred direct labor would include a credit to - ANSWER:
accrued payroll
firms should use a process costing system when they produce products that -
ANSWER: pass through a series of manufacturing departments
from the industries listed below, which one is most likely to use process costing in
accounting for production costs?
a. steel mill
b .automobile repair shop
c. accounting firm
d. printing shop
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