Which of the following ideal defines cost allocation?A) A element that links in a organized method an indirect cost or group of indirect costs to a cost object.B) The assigning of instraight expense to the chosen cost object.C) A team of individual price items.D) The assigning of direct price to the chosen object.

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How does a job-costing mechanism differ from a process-costing system?A) A Job-costing device asindications expense to masses of comparable units; a process-costing mechanism asindicators expense to unique systems.B) A job-costing systems asindications expense to distinctive units; a process-costing assigns price to masses of comparable systems C) A process-costing mechanism allocates indirect prices to assets to product; a job costing mechanism does not alsituate instraight price to productsD) A job-costing mechanism allocates indirect cost to products; a process-costing system does not allocate indirect cost to products.
B) A job-costing systems asindicators price to distinct units; a process-costing asindicators price to masses of similar units
Why might an heralding agency usage project costing for an heralding campaign by Pepsi, whereas a bank might usage process costing to recognize the cost of checking account deposits?A) Job costing deserve to be supplied to compute the expense of masses of equivalent solutions, in contrast procedure costing allows all the specific aspects of each job to be identified individually.B) An proclaiming agency provides the very same service to all its clients, while a financial institution provides its customers through specialized services. For that reason an declaring agency would certainly usage task costing to monitor the expense of an heralding campaign by Pepsi.C) Whenever a product or company is unique or distinctive, procedure costing is the a lot of reliable means to asauthorize expense. As such considering that each banking transaction is unique, the financial institutions use procedure costing to recognize the expense of checking account deposits.D) Job costing permits all the particular elements of each project to be identified, whereas procedure costing have the right to be provided to compute the expense of numerous similar or comparable solutions.
D) Job costing allows all the specific elements of each project to be established, whereas process costing deserve to be provided to compute the cost of plenty of identical or comparable services.
Tip 1: Identify the project that is the chosen price object.Step 2: Identify the straight price of the job.Step 3: Select the cost-allocation bases to usage for allocating indirect expense to the project.Step 4: Identify the indirect cost linked with each cost-allocation base.Step 5: Compute the rate per unit of each cost-allocation base provided to alsituate indirect price to the Job.Tip 6: Compute the indirect cost allocated to the project.Step 7: Compute the full expense of the project by including all direct and also indirect expense assigned to the task.
The two significant price objects that manger emphasis on in service providers utilizing task costing areA) fixed price and also variable prices.B) Cost pool and price alarea base.C) Direct cost and indirect costs.D) Products or tasks and duty centers or departments.
Identify 3 significant source records used in job-costing units.A) accounts receivable aging report, accounts payable aging report,and inventory manage reportB) gengenuine journal, general ledger, and trial balanceC) task expense record (sheet), products requisition document, and also labor time recordD) balance sheet, revenue statement, and cosh flow statement
Identify the major worry around source records provided to prepare job-cost documents.A) timeliness of the records- ensuring that the records are accessible as soon as neededB) accuracy of the records- incorrect recording of amounts, incorrect task numbers, materials being "borrowed" for one more jobC) safeguarding the document from occasions such as theft or fireD) none of the above
B) accuracy of the records- incorrect recording of quantities, incorrect job numbers, materials being "borrowed" for an additional job
Identify the reason(s) why most establishments usage an yearly duration fairly than a weekly or monthly period to compute budgeted indirect-cost rates.A) The numerator reason- the longer time duration, the less influence of seasonal fads.B) The denominator reason- the longer the moment period, the much less the effect of variations in output levels on the allocation of resolved expense.C) Neither A or B.D) Both A and B.
Distinguish in between actual costing and also normal costing.A) Actual costing and also normal costing differ in their usage of actual or budgeted indirect-price rates.B) Actual costing and normal costing differ in their usage of actual or budgeted direct-expense price.C) Actual costing and normal costing differ in their use of actual or budgeted amounts of direct-expense inputsD) Actual costing and normal costing differ in their use of actual or budgeted amounts of expense allocation bases.
Identify the methods in which a house building firm might usage job-expense indevelopment.A) (a) to identify the profitcapacity of individual jobs, (b) to help in bidding on future jobs, and (c) to evaluate professionals are in charge of managing individual jobsB) (a) to divide the total cost of constructing all the residences by the complete variety of houses developed to achieve an average cost of house, and (b) to apple the average per-unit price to each of the identical or similar residences developed in the period.C) (a) to report profit outcomes to shareholders, and also (b) to report taxable earnings to taxes authoritiesD) none of the over.
A) (a) to identify the profitability of individual tasks, (b) to aid in bidding on future work, and also (c) to evaluate specialists are in charge of regulating individual jobs
Determine whether this statement is true or false. "In a normal-costing mechanism, the quantities in the Manufacturing Overhead Allocated account will certainly always equal the amount in the Manufacturing Overhead Allocated account"A) The statement is true.B) the statement is false.
Identify three various delittle entries to the Work-in-Process Control T-account under normal costing.A) direct products use, direct production labor bilresulted in a task, production overhead alsituated to a jobB) direct materials purchased, production overhead incurred, completion and deliver of work to finiburned goodsC) straight materials purchased, instraight production labor passist to employees, manufacturing overhead incurredD) direct materials purchased, completion and also transport of work finiburned excellent, sale of completed goods
A) straight products use, direct production labor bilresulted in a project, production overhead alsituated to a job
Identify the correct way(s) to dispose of under-or over alsituated overhead costs. A) (1) Proration to materials inventory, finished goods and cost of excellent offered, (2) Yea-finish write-off to work in procedure inventory, (3) Restatement of all overhead entries utilizing budgeted indirect price rates quite than actual indirect cost.B) (1) Proration to all operating expense accounts, (2) Year-end write-off to various price, (3) Restatement of all overhead entries using budgeted instraight cost prices quite than actual instraight price.C) (1) Proration to occupational in procedure, finished goods and also cost of products sold, (2) Year-finish write-off to price of goods marketed, (3) Restatement of all overhead entries using actual indirect expense prices fairly than budgeted instraight expense rates.D) No entry is compelled to dispose of over or under-under-allocated overhead.
C) (1) Proration to job-related in process, finished products and price of goods sold, (2) Year-end write-off to price of products marketed, (3) Restatement of all overhead entries making use of actual instraight cost rates rather than budgeted indirect cost rates.
A company can use budgeted cost rather than actual expense to compute direct-labor rates becauseA) the budgeted price will certainly bring about reduced corpoprice income taxes.B) the budgeted price are more exact C) the budgeted price will bring about a higher gross margin.D) it might be difficult to map straight labor cost to work as they are completed.
Modern innovation such as Electronic Documents Interadjust (EDI) is valuable to maneras becauseA) it lowers production B) it increases product top quality C) it rises production productivityD) it offers them via quick and also specific product-price indevelopment that facilitates the management and also regulate of work.

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D) it gives them through quick and also exact product-expense information that facilitates the management and manage of work.
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