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:
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
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
