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 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
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
