Which of the following accounts is used to accumulate the actual MOH costs incurred during a period?

Which of the following accounts is used to accumulate the actual MOH costs incurred during a period?

A Applied MOH
B WIP
C MOH Control
D COGS
E FG


Answer: C

Which of the following documents is used as the basis for posting to the DL section of the job cost sheet?

Which of the following documents is used as the basis for posting to the DL section of the job cost sheet?

A Purchase requisition
B material req
C Receiving report
D Purchase order
E Time Card


Answer: E

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet?

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet?

A Purchase requisition
B material req
C Receiving report
D Purchase order
E Time Card


Answer: B

Which of the following companies would most likely use job costing?

Which of the following companies would most likely use job costing?

A paper manufacturer
B paint producer
C breakfast cereal maker
D advertising agency


Answer: D

Which of the following is not a characteristic of job costing?

Which of the following is not a characteristic of job costing?

A Each job is distinguishable from the other jobs
B Identical units are produced on an ongoing basis
C Job cost data are used for setting prices and bids
D It is possible to compare actual costs with estimated costs


Answer: B

For which of the following businesses would the job order cost system be appropriate?

For which of the following businesses would the job order cost system be appropriate?

A auto repair shop
B crude oil refinery
C drug manufacturer
D beer distillery


Answer: A

Cost pools are:

Cost pools are:

A costs that are accumulated before being allocated to cost objects on some common basis
B costs that are relevant to decision making but irrelevant to financial reporting
C product costs that are assigned to cost objects using DL or MH
D accounts in the product life cycle from research and development to customer service


Answer: A

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying OH to production?

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying OH to production?

A DL$
B DM$
C DLH
D MH
E Sales value of the product produced


Answer: A

When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis of applying OH costs to WIP?

When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis of applying OH costs to WIP?

A DL hours
B DL $
C Maching H
D Cost of materials


Answer: C

The basic cost flow model is:

The basic cost flow model is:

A BB+TO=TI+EB
B BB+TO-TI=EB
C EB=BB+TI-TO
D EB-BB=TO-TI
E EB+TI-TO=BB


Answer: C

The Cost Flow Diagram includes all of the following except:

The Cost Flow Diagram includes all of the following except:

A Selling expenses
B DM
C DL
D FMOH
E VMOH


Answer: A

Which of the following statements are false regarding cost allocations and product costing?

Which of the following statements are false regarding cost allocations and product costing?

A It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler
B In general, indirect costs are assigned, while direct costs are allocated.
A only A is false
B Only B is false
C Both A and B are false
D neither A nor B is false


Answer: C

Which of the following statements is (are) true regarding product costing?

Which of the following statements is (are) true regarding product costing?

A individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements
B A common decision facing managers is determining the price at which to sell their product or provide their services.
A only A is true
B only B is true
C Both A and B are true
D neither A nor B is true


Answer: B

In the standard regression equation of y=a+bx, the letter y is best described at the:

In the standard regression equation of y=a+bx, the letter y is best described at the:

A independent variable
B dependent variable
C slope of the equation
D intercept of the equation


Answer: B

Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior?

Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior?

A missing data
B Outliers
C Allocated Costs
D Depreciable Assets


Answer: D

Which of the following is the difference between variable costs and fixed costs?

Which of the following is the difference between variable costs and fixed costs?

A variable costs per unity fluctuate and fixed CPU remain constant
B variable CPU are fixed over the relevant range and fixed CPU are variable
C Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change
D Variable CPU change in varying increments, while fixed CPU change in equal units
E total variable costs can be varied by mgmt, while fixed costs are uncontrollable


Answer: B

In determining cost behavior in business, the cost function is often expressed as Y= a+bX. Which on the the following cost estimate methods should NOT be used in estimating fixed and variable costs for the equation?

In determining cost behavior in business, the cost function is often expressed as Y= a+bX. Which on the the following cost estimate methods should NOT be used in estimating fixed and variable costs for the equation?

A Scattergraph method
B Simple regression
C High-Low point method
D Multiple regression
E Management analysis of data


Answer: E

In the standard regression equation of y=a+bx, the letter a is best described as the:

In the standard regression equation of y=a+bx, the letter a is best described as the:

A independent variable
B dependent variable
C slope of the equation
D intercept of the equation


Answer: D

A disadvantage of the high-low method of cost analysis is that it:

A disadvantage of the high-low method of cost analysis is that it:

A typically results in totally inaccurate cost formula
B is too time consuming to apply
C uses only two data points, which may not be representative of normal conditions
D relies totally on the judgement of the person performing the cost analysis


Answer: C

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

Which of the following cost estimation methods finds the variable portion of a mixed cost before calculating the fixed portion?

A Scattergraph
B High-Low
C Account analysis
D Linear regression
E engineering approach


Answer: B