361-Chapter-5-MC-Solutions

Chapter5—JobOrderCostingMULTIPLECHOICE1.Whichofthefollowingorganizationswouldbemostlikelytouseajob-ordercostingsystem?a.theloandepartmentofabankb.thecheckclearingdepartmentofabankc.amanufacturerofprocessedcheesefoodd.amanufacturerofvideocassettetapesANS:APTS:1DIF:ModerateOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting2.Whenjob-ordercostingisused,theprimaryfocalpointofcostaccumulationisthea.department.b.supervisor.c.item.d.job.ANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting3.Inajob-ordercostingsystem,a.standardscannotbeused.b.anaveragecostperunitwithinajobcannotbecomputed.c.costsareaccumulatedbydepartmentsandaveragedamongalljobs.d.overheadistypicallyassignedtojobsonthebasisofsomecostdriver.ANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting4.Whatisthebestcostaccumulationproceduretousewhenmanybatches,eachdifferingastoproductspecifications,areproduced?a.job-orderb.processc.actuald.standardANS:APTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting5.Whichofthefollowingcouldnotbeusedinjob-ordercosting?a.standardsb.anaveragecostperunitforalljobsc.normalcostingd.overheadallocationbasedonthejob'sdirectlaborhoursANS:BPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter526.Whichofthefollowingcostingsystemsallowsmanagementtoquicklyrecognizematerials,labor,andoverheadvariancesandtakemeasurestocorrectthem?ActualCostSystemNormalCostSystema.yesyesb.yesnoc.noyesd.nonoANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting7.Whichofthefollowingcostingmethodsofvaluationareacceptableinajob-ordercostingsystem?ActualMaterialCostStandardMaterialCostActualLaborCostPredeterminedOverheadCosta.yesyesnoyesb.yesnoyesnoc.noyesyesyesd.yesyesyesyesANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting8.Inanormalcostsystem,adebittoWorkinProcessInventorywouldnotbemadefora.actualoverhead.b.appliedoverhead.c.actualdirectmaterial.d.actualdirectlabor.ANS:APTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting9.Afterthecompletionofproduction,standardandactualcostsarecomparedtodeterminethe____oftheproductionprocess.a.effectivenessb.complexityc.homogeneityd.efficiencyANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter5310.Acompanyproducingwhichofthefollowingwouldbemostlikelytouseapricestandardformaterial?a.furnitureb.NFL-logojacketsc.custom-madepictureframesd.noneoftheaboveANS:BPTS:1DIF:ModerateOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting11.Knowingspecificjobcostsenablesmanagerstoeffectivelyperformwhichofthefollowingtasks?a.estimatecostsoffuturejobs.b.establishrealisticjobsellingprices.c.evaluatejobperformance.d.allanswersarecorrect.ANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting12.Ajob-ordercostingsystemislikelytoprovidebetter(1)inventoryvaluationsforfinancialstatements.(2)controloverinventory.(3)informationaboutabilitytoacceptadditionalproductionwork.(1)(2)(3)a.yesnonob.noyesyesc.nononod.yesyesyesANS:DPTS:1DIF:DifficultOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting13.Thetrendinjob-ordercostingistoa.eliminatethedataentryfunctionfortheaccountingsystem.b.automatethedatacollectionanddataentryfunctions.c.useaccountingsoftwaretochangethefocalpointofthejob-ordersystem.d.createanIntranettoshareinformationbetweencompetitors.ANS:BPTS:1DIF:EasyOBJ:5-5NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,ReportingChapter5414.job-ordercostingandprocesscostinghavewhichofthefollowingcharacteristics?Job-orderCostingProcessCostinga.homogeneousproductsheterogeneousproductsandlargequantitiesandsmallquantitiesb.homogeneousproductsheterogeneousproductsandsmallquantitiesandlargequantitiesc.heterogeneousproductshomogeneousproductsandlargequantitiesandlargequantitiesd.heterogeneousproductshomogeneousproductsandsmallquantitiesandlargequantitiesANS:DPTS:1DIF:EasyOBJ:5-1NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting15.Thesourcedocumentthatrecordstheamountofrawmaterialthathasbeenrequestedbyproductionisthea.job-ordercostsheet.b.billoflading.c.interofficememo.d.materialrequisition.ANS:DPTS:1DIF:EasyOBJ:5-2NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting16.Amaterialrequisitionformshouldshowallofthefollowinginformationexcepta.jobnumber.b.quantityrequired.c.unitcost.d.purchaseordernumber.ANS:DPTS:1DIF:EasyOBJ:5-2NAT:AACSB:ReflectiveThinkingLOC:AICPAFunctionalCompetencies:Measurement,Reporting17.Whichofthefollowingstatementsaboutjob-ordercostsheetsistrue?a.Alljob-ordercostsheetsserveasthegen