1. Question : Which of the following statements is correct concerning
job-order costing?
Student Answer: Job-order costing would be appropriate for a
textbook publisher.
All the costs appearing on a job cost sheet are actual
costs.
Indirect materials are charged to a specific job.
Job-order costing is mainly used in firms with
homogeneous products such as oil refineries.
Instructor Textbooks can vary in many ways so job order costing
Explanation: would be a good fit for this industry.
BUS 3041 WEEK 1 QUIZ
Question 2. Question : Job-order costing is used in manufacturing companies
and process costing is used in service companies.
Student True False
Answer:
Instructor Either costing methods can be used in
Explanation either types of companies.
:
Question 3. Question : A flour manufacturer is more likely to use process
costing than job-order costing whereas a manufacturer
of customized leather jackets is more likely to use job-
order costing than process costing.
Student True False
Answer:
, Instructor Job costing is more appropriate when costs
Explanation are traceable such as in customized orders.
:
Question 4. Question : Which of the following types of companies would
typically use process costing rather than job-order
costing?
Student A small appliance repair shop.
Answer:
A manufacturer of commercial passenger aircraft.
A specialty equipment manufacturer.
A breakfast cereal manufacturer.
Instructor Many of the stages of production of food items are difficult
Explanation: to trace to a specific product so process costing is a better fit.
Question 5. Question : Including manufacturing overhead costs in product costs
ensures that each product will earn a profit.
Student True False
Answer:
Instructor This ensures that we have good cost
Explanation information, not necessarily a profit.
:
Question 6. Question : Normally a job cost sheet is not prepared for a job until
after the job has been completed.
Student True False
Answer:
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