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 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

The entry to record the purchase of materials on account using a job costing system would include a:

The entry to record the purchase of materials on account using a job costing system would include a:

A) debit to materials inventory.
B) debit to accounts payable.
C) debit to work in process inventory.
D) credit to work in process inventory.


Answer: A

In job costing, direct materials used in production are debited to which of the following?

A) manufacturing overhead
B) work in process inventory
C) finished goods inventory
D) either manufacturing overhead or work in process inventory


Answer: B

Which of the following would be debited to record the requisition of direct materials?

A) materials inventory
B) work in process inventory
C) finished goods inventory
D) cost of goods manufactured


Answer: B

What type of costing system would a manufacturer of plywood use?

What type of costing system would a manufacturer of plywood use?

A) job costing
B) process costing
C) either job costing or process costing
D) both job costing and process costing


Answer: B

Which of the following companies is most likely to use job costing?

A) Exxon Mobil Oil Refinery
B) Elizabeth's Custom Furniture Company
C) DuPont Chemical Company
D) Kellogg's Cereal Company


Answer: B

________ is assigning costs such as direct materials and direct labor to products.

A) Cost assigning
B) Cost tracing
C) Cost allocation
D) None of the these


Answer: B