LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

Chapter 2 - Job Order Costing Copyright Cengage Learning. Powered by Cognero.Page 1

• True / False

Cost accounting systems measure, record, and report product costs.

• True

b.False

ANSWER:True

DIFFICULTY:Bloom's: Remembering Easy

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.27 - Managerial Accounting Features/Costs ACCT.ACBSP.APC.34 - Job Order Costing ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that

passes through the factory.

• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• A process cost accounting system provides for a separate record of the cost of each particular quantity of product that

passes through the factory.

• True

b.False

ANSWER:False

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.ACBSP.APC.35 - Process Costing ACCT.IMA.07 - Cost Management Managerial Accounting 14th Edition Warren Test Bank Visit TestBankDeal.com to get complete for all chapters

Chapter 2 - Job Order Costing Copyright Cengage Learning. Powered by Cognero.Page 2

BUSPROG: Analytic

• A process cost accounting system provides product costs for each of the departments or processes within the factory.
• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.ACBSP.APC.35 - Process Costing ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable

from each other during a continuous production process.

• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.ACBSP.APC.35 - Process Costing ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• The process cost system is appropriate where few products are manufactured and each product is made to customers'

specifications.

• True

b.False

ANSWER:False

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.ACBSP.APC.35 - Process Costing ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• A job order cost system would be appropriate for a crude oil refining business.
• True

b.False

ANSWER:False

DIFFICULTY:Moderate

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-01 - 02-01

Chapter 2 - Job Order Costing Copyright Cengage Learning. Powered by Cognero.Page 3

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and

finished goods in job order costing systems.

• True

b.False

ANSWER:True

DIFFICULTY:Bloom's: Remembering Easy

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• When the goods are sold, their costs are transferred from Work in Process to Finished Goods.
• True

b.False

ANSWER:False

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• The materials requisition serves as the source document for debiting the accounts in the materials ledger.
• True

b.False

ANSWER:False

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• Materials are transferred from the storeroom to the factory in response to materials requisitions.
• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

Chapter 2 - Job Order Costing Copyright Cengage Learning. Powered by Cognero.Page 4

BUSPROG: Analytic

• The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.
• True

b.False

ANSWER:False

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.
• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• Depreciation expense on factory equipment is part of factory overhead cost.
• True

b.False

ANSWER:True

DIFFICULTY:Moderate

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• Factory overhead is applied to production using a predetermined overhead rate.
• True

b.False

ANSWER:True

DIFFICULTY:Easy

Bloom's: Remembering

LEARNING OBJECTIVES: MANG.WARD.18.02-02 - 02-02

ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing

ACCT.IMA.07 - Cost Management

BUSPROG: Analytic

• If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.