Chapter No 8 Job Order And Batch Costing

1. All of the following would most likely use a job order costing system except:

a. a dental practice.
b. an auto repair shop.
c. a small appliance maker.
d. an architectural firm.

2. Which of the following costs is not charged to Work in Process in a normal cost system?

a. Actual overhead
b. Actual direct materials
c. Actual direct labor
d. Estimated indirect labor

3. Which of the following serves at a subsidiary ledger for the Work in Process account?

a. Standard cost card

b. Material requisition form
c. Job requisition form
d. . Job order cost sheet

4. Which of the following is not a source document used in job order costing systems?

a. Cost of production report

b. Employee time sheet
c. Job cost sheet
d. Material requisition form

5. Which of the following costing systems does not involve computing cost variances?

a. Actual costing system

b. Normal costing system
c. Standard costing system
d. All of the above systems involve computing cost variances

6. Actual costs are:

a. the costs incurred

b. budgeted costs
c. estimated costs
d. forecasted costs

7. Budgeted costs are:

a. the costs incurred this year

b. the costs incurred last year
 c. planned or forecasted costs
d. competitor’s costs

8. Select the incorrect matching of cost and cost level.

a. Unit level : Direct material
b. Facility level : Equipment maintenance
c. Product level : Product development
d. Batch level : Setup costs

9. Which costing system assigns costs within multiple cost pools to products using
multiple drivers?
a. Activity-based costing
b. Variable costing
c. Traditional costing
d. None of the above

10. Which of the following includes both traced direct costs and allocated indirect
costs?
a. cost tracing
b. cost pools
c. cost assignments
d. cost allocations

11. A links an indirect cost to a cost object.

a. cost-allocation base
b. cost pool
c. cost assignment
d. cost tracing

12. A is a grouping of individual indirect cost items.

a. cost allocation base
b. cost assignment
c. cost pool
d. job-costing system

13 costing is used by a business to price homogeneous products.

a. Actual
b. Job
c. Process
d. Traditional

14 costing is used by a business to price unique products for different jobs.

a. Actual
 b. Job
c. Process
d. Traditional

15. Assigning direct costs to a cost object is called:

a. cost allocation
b. cost assignment
c. cost pooling
d. cost tracing

16 is the process of distributing indirect costs to products.

a. Cost allocation
b. Job cost recording
c. Cost pooling
d. Cost tracing

17. The basic source document for direct manufacturing labor is the:
a. job-cost record
b. materials-requisition record
c. labor-time record
d. All of these answers are correct.

18. Job-costing may only be used by:

a. service companies
b. merchandising companies
c. manufacturing companies
d. All of these may use job-costing

19. Non-production overheads might be added to the cost of the job:

a. As a percentage of the prime cost of the job

b. As a percentage of the production cost of the job
c. Either A or B
d. None

20. In job costing each job is given a unique:

a. Identity number, or job number

b. Account name
c. Costing system
d. None

21. Costs for each job are collected on a:

 a. Job cost sheet
b. Job card
c. Either A or B
d. None

22. The items recorded on job cost sheet would include:

a. Job number, description of job, specifications, etc.

b. Customer details, estimated costs, selling price, estimated profit
c. Delivery date promised, actual delivery date, delivery note number
d. All of the above

23. What would be the effect of inaccurate estimation of overhead absorption rates on a
Job?

a. If the jobs are over-priced, customers will go elsewhere

b. If the jobs are underpriced, sales revenue will fail to cover costs and/or provide an
adequate return
c. Both A&B
d. None
24. The production operations of most businesses can be categorized as either being:

A. Specific orders
B. Continuous operations
C. Both A or B
D. None

25. Identify the types of specific order costing.

A. Job costing
B. Batch costing
C. Process costing
D. Both A&B only