Question # 1:
(1 Mark Each)
1). A standard cost system;
a). Is more accurate than a standard cost system.
b). Requires less information prior to production than
an actual cost system.
c). Allows the determination of product cost at an earlier
time than does an actual cost system.
d). Records norms in the accounting records against
Which current costs can be compared.2). A process costing system would “most likely” be found
In which of the following businesses?
a). A defense contractor that makes tanks, stun guns, and
laser weapons as well as other commercial products.
b). A soft-drink manufacturer that makes six types of queues.
c). A firm that designs software programs for specific
customer demands.
d). An oil exploration firm.
3). In adepartment that uses process costing, equivalent units
of production represent the;
a). Completed units plus the units in ending work in process
inventory.
b). Units transferred out.
c). Units remaining in work in process at the end of the
period.
d). Number of units that could have been completed if
all work would have been used to produce whole units.
4). An operations flow document;a). Traces the quantity and cost of materials flowing through
an operation.
b). Specifies the tasks needed to make a product and the times
allowed for each task.
c). Flowcharts the shortest path by Which to arrange machinery
for completion of a product.
d). Traces the network of control points from receipt of a customer’s
order to delivery of theproduct.
5). The traditional labor efficiency variance calculation motivates
managers to;
a). Ignore quality concerns by minimizing the time spent
in production.
b). Empower workers to learn to perform multiple tasks.
c). Employ the most skilled workers so tasks can be performed
in the least amount of time.
d). All of the above are true.
6). A process map;a). Depicts the set of instructions by Which customers make
their post-delivery assembly of a product.
b). Shows the Process by Which a product is created during
product planning, preliminary design, and the detailed
design phase.
c). Presents a product’s flow through its distribution
distribution channel.
d). Indicates all steps taken in producing a product.
7). Which of thefollowing is a non-value-added activity in a
manufacturing company?
a). Inspecting.
b). Assembling.
c). Fabricating.
d). Polishing.
8). Activity drivers are used to;
a). Accumulate costs in an activity center.
b). Allocate costs from an activity center to the center’s
output.
c). Predict the organization-level costs that should be
assigned to administrative expenses.
d). Measure thetotal long-term variable costs in INCURRED
an organization.
9). Product variety refers to the number of;
a). Features a particular product provides for customers.
b). Components or processes included in a product.
c). Different types of products produced or services
rendered.
d). Engineering change orders made on a product’s design
since originally being Placed into production.10). Which of the following techniques is commonly used to
assign costs to cost objects?
a). Expiration.
b). Allocation.
c). Extrapolation.
d). Reorganization.
Question # 2:
(2 Marks Each)
1). KCALB CORP. manufactures products on a job order basis.
The job cost sheet for Job 329 shows the following for the
month of March:
Direct materials $ 5,000
Direct labor(100 hours @ $ 7.25) 725
Machine 40 hours INCURRED
Default overhead rate per machine hour $ 26
At the end of March, total cost what appears on the job cost
Job sheet for 329?
a). $ 5,725.
b). $ 5,765.
c). $ 6,765.
d). $ 8,325.
2). Products at NEERG MANUFACTURING LTD. are sent through
two Production Departments: Fabricating and Finishing.
Overhead is applied…
