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Chapter 02 – Job Order Costing and Analysis
2-1
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.Chapter 02 Job Order Costing and Analysis
True / False Questions
[Question]
- A manufacturing company that uses a cost accounting system normally has only two inventory
accounts: Finished Goods Inventory and Goods in Process Inventory.
Answer: False
Blooms Taxonomy: Remember
AACSB: Communication
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 1 Easy
Learning Objective: 02-C1
Topic: Cost Accounting System
[Question]
- Cost accounting systems accumulate costs and then assign them to products or services.
Answer: True
Blooms Taxonomy: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C1
Topic: Cost Accounting System
[Question]
- There are two basic types of cost accounting systems: job order costing and periodic costing.
Answer: False
Blooms Taxonomy: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C1
Topic: Job Order Costing
Topic: Process Costing
[Question]
- A manufacturing firm that produces large numbers of standardized units would normally use a
job order cost accounting system.
Answer: False
Blooms Taxonomy: Remember
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 1 Easy
Managerial Accounting 4th Edition Wild Test Bank Visit TestBankDeal.com to get complete for all chapters
Chapter 02 – Job Order Costing and Analysis
2-2
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Learning Objective: 02-C1
Topic: Job Order Costing
[Question]
- Job order manufacturing systems would be appropriate for companies that produce custom
homes, specialized equipment, and special computer systems.
Answer: True
Blooms Taxonomy: Remember
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 1 Easy
Learning Objective: 02-C1
Topic: Job Order Costing
[Question]
- Job order manufacturing systems would be appropriate for companies that produce compact
disks or disposable cameras.
Answer: False
Blooms Taxonomy: Apply
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 3 Hard
Learning Objective: 02-C1
Topic: Job Order Costing
[Question]
- A job order cost accounting system would be appropriate for a manufacturer of automobile
tires.
Answer: False
Blooms Taxonomy: Apply
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 3 Hard
Learning Objective: 02-C1
Topic: Job Order Costing
[Question]
- Job order manufacturing systems would be appropriate for companies that produce training
films for a specific customer.
Answer: True
Blooms Taxonomy: Apply
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 3 Hard
Learning Objective: 02-C1
Chapter 02 – Job Order Costing and Analysis
2-3
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Topic: Job Order Costing
[Question]
- A company's file of job cost sheets for finished but unsold jobs equals the balance in the
Finished Goods Inventory account.
Answer: True
Blooms Taxonomy: Understand
AACSB: Communication
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- The raw materials section of a job cost sheet shows the materials costs assigned to a job, but
the direct labor section shows only the total hours of labor exerted by employees on the job.
Answer: False
Blooms Taxonomy: Understand
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- In a job order cost accounting system, the total balances of all of the job cost sheets for
unfinished jobs equal the balance in the Goods in Process Inventory account.
Answer: True
Blooms Taxonomy: Understand
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- A job cost sheet is useful for developing financial accounting numbers but does not contain
information that is useful for managing the manufacturing process.
Answer: False
Blooms Taxonomy: Understand
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Chapter 02 – Job Order Costing and Analysis
2-4
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Topic: Job Order Costing
[Question]
- Job cost sheets are used to track all of the costs assigned to a job, including direct materials,
direct labor, overhead, and all selling and administrative costs.
Answer: False
Blooms Taxonomy: Apply
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 3 Hard
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- When a job is finished, its job cost sheet is completed and moved from the file of jobs in
process to the file of finished jobs that are yet to be delivered to customers.
Answer: True
Blooms Taxonomy: Understand
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- The file of job cost sheets for completed but undelivered jobs equals the balance in the Goods
in Process Inventory account.
Answer: False
Blooms Taxonomy: Understand
AACSB: Analytic
AICPA BB: Industry
AICPA FN: Reporting
Difficulty: 2 Medium
Learning Objective: 02-C2
Topic: Job Cost Sheets
[Question]
- Job order costing is applicable to manufacturing firms only and not service firms.
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