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Job Costing – Chapter 4

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1. Which of the following statements is correct? Job costing information is used_____ A. to develop strategies B. to make pricing decisions C. for external financial reporting D. All of these answ... ers are correct. 2. Which of the following statements is correct? In a costing system_____ A. cost tracing allocates indirect costs B. cost allocation assigns direct costs C. a cost-allocation base can be either financial or nonfinancial D. a cost object should be a product and not a department or a geographic territory 3. Direct costs are assigned to a cost object through which of the following methods? A. cost allocation B. cost assignment C. cost pooling D. cost tracing 4. Which of the following statements is correct? Job costing____ A. can only be used in manufacturing B. records the flow of costs for each customer C. allocates an equal amount of cost to each unit made during a time period D. is commonly used when each unit of output is identical 5. Actual costing is a costing method that allocates______________ indirect costs. A. actual B. budgeted C. estimated D. predetermined 6. When using a normal costing system, manufacturing overhead is allocated using the __________ manufacturing overhead rate and the __________ quantity of the allocation base. A. budgeted, actual B. budgeted, budgeted C. actual, budgeted D. actual, actual 7. Which of the following statements is correct? In a normal costing system, the Manufacturing Overhead Control account__________. A. is increased by allocated manufacturing overhead B. is credited with amounts transferred to Work-in-Process C. is decreased by allocated manufacturing overhead D. is debited with actual overhead costs [Show More]

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