Cost Accounting Quiz PDF

1\. A credit to Work in Process Inventory represents A. work still in process. B. raw material put into production. C. the application of overhead to production. ANSWER: D. the transfer of completed items to Finished Goods Inventory. 2\. The distinction between direct and indirect costs depends...

1\. A credit to Work in Process Inventory represents A. work still in process. B. raw material put into production. C. the application of overhead to production. ANSWER: D. the transfer of completed items to Finished Goods Inventory. 2\. The distinction between direct and indirect costs depends on whether a costs A. Is controllable or non-controllable B. Is variable or fixed ANSWER: C. Can be conveniently and physically traced to a cost object under consideration D. Will increase with changes in levels of activity 3\. For a manufacturing company, direct labor costs may be included in A. Direct materials inventory only B. Merchandise inventory only ANSWER: C. Both work in process inventory and finished goods inventory D. Direct materials inventory, work in process inventory and finished goods inventory accounts 4\. Manufacturing-sector companies report A. Only merchandise inventory B. Only finished goods inventory ANSWER: C. Raw materials inventory, work in process inventory and finished goods inventory accounts D. No inventory accounts 5\. When job order costing is used, the primary focal point of cost accumulation is the A. department. B. supervisor. C. item. ANSWER: D. job. 6\. In a job order costing system, A. standards cannot be used. B. an average cost per unit within a job cannot be computed. C. costs are accumulated by departments and averaged among all jobs. ANSWER: D. overhead is typically assigned to jobs on the basis of some cost driver. 7\. What is the best cost accumulation procedure to use when many batches, each differing as to product specifications, are produced? ANSWER: A. job order B. process C. actual D. standard 8\. Manufacturing/factory overhead costs in an automobile manufacturing plant most likely include: A. Labor cost of the painting department ANSWER: B. Indirect material cost such as lubricants C. Sales commissions D. Steering wheel costs 9\. Which of the following could not be used in job order costing? A. standards ANSWER: B. an average cost per unit for all jobs C. normal costing D. overhead allocation based on the job\'s direct labor hours TRUE OR FALSE 1. Indirect materials/ factory supplies are classified as administrative expense. FALSE 2. The salary paid to a factory foreman is classified as factory overhead. TRUE 3. Lumber can be both a finished product and a material. TRUE 4. Google would be an example of a merchandising company. FALSE 5. Marketing, Selling and Administrative Costs are the three broad classifications of costs incurred by a manufacturing company. **FALSE** 6. Conversion costs include all direct manufacturing costs. FALSE