INTRODUCTION TO MANAGERIAL ACCOUNTING
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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 homogeneo...
Test Bank for Introduction to Managerial Accounting 6th Edition Brewer, Garrison, Noreen,100% CORRECTTrue / False Questions 
1. The use of predetermined overhead rates in a job-order cost system 
makes it possible to estimate the total cost of a given job as soon as 
production is completed. 
True False 
2. A job cost sheet is used to accumulate costs charged to a job. 
True False 
3. The following journal entry would be made to apply overhead cost to jobs 
in a job-order costing system: 
True F...