5 Written Questions
5 Matching Questions
- Job costing
- Job shop
- Outlay costs
- Inventoriable costs
- a costs added to inventory accounts.
- b costs are collected for each unit produced. Process costing accumulates costs in a department for an accounting period and then spreads them evenly, or on an average basis, over all units produced that period. process costing assumes that each unit produced is relatively uniform.
- c a past, present, or future cash flow.
- d activity, resource, or policy that limits or bounds the attainment of an objective
- e firm that produces jobs
5 Multiple Choice Questions
- cost of job determined by standard (budgeted) direct material and labor cost plus overhead applied using a predetermined overhead rate and a standard (budgeted) allocation base.
- the basic approach in product costing is to allocate costs in the cost pool to the individual cost objects, which are the products or services of interest. we assign, or allocate, these costs to the individual cost objects by using appropriate cost allocation bases or cost drivers.
- difference between budgeted and actual results arising from differences between the inputs that were budgeted per unit of output and the inputs actually used.
- provides customers an intangible product. While retail and wholesale companies sell but do not make intangible products, also they have additional information which is cost of goods sold.
- difference between budgeted and actual results (equal to the sum of the price and efficiency variances)
5 True/False Questions
cost hierarchy → classification of cost drivers into general levels of activity, such as volume, batch, or product
equivalent units → purpose of presenting the T-accounts is to give you an overview of the cost flows associated with the process costing computations.
production cost report → report that summarizes production and cost results for a period; generally used by managers to monitor production and cost flows.
Contribution margin per unit of scarce resource → periodically
Two types of product costs → costs assigned to the manufacture of products and recognized for financial reporting when sold.