ACC 202 CHAPTER 3 (ANDERSON SDSU) QUESTIONS AND
VERIFIED ANSWERS |100% CORRECT | ALREADY GRADED
A
product costing in a manufacturing firm is the process of... Correct
Answers assigning costs to the firm's inventory
Which of the following statements is true?
A. Service firms have little need for determining the cost of their
services.
B. The concept of product costing is relevant only for manufacturing
firms.
C. The cost of year-end inventory appears on the balance sheet as an
expense.
D. Service companies use cost information for planning and control
purposes.
E. Mining and petroleum companies have no inventorial costs. Correct
Answers D. Service companies use cost information for planning and
control purposes
Which of the following manufacturers would most likely use job-order
costing?
A. Chemical manufacturers.
B. Microchip processors.
C. Custom-furniture manufacturers.
D. Gasoline refiners.
,E. Fertilizer manufacturers. Correct Answers C. Custom-furniture
manufacturers
A custom-home builder would likely utilize: Correct Answers job order
costing
5. Which of the following types of companies would most likely use
process costing?
A. Aircraft manufacturers.
B. Textile manufacturers.
C. Textbook publishers.
D. Custom-machining firms.
E. Shipbuilders. Correct Answers B. Textile manufacturers
A manufacturing firm produces goods in accordance with customer
specifications, commencing production upon receipt of a purchase
order. To accumulate the cost of each order, the company would use a:
Correct Answers job cost record
A typical job-cost record would provide information about all of the
following items related to an order except:
A. the cost of direct materials used.
B. administrative costs.
C. direct labor costs incurred.
D. applied manufacturing overhead.
, E. direct labor hours worked. Correct Answers B. administrative costs
8. Which of the following statements about material requisitions is
false?
A. Material requisitions are often computerized.
B. Material requisitions are a common example of source documents.
C. Material requisitions contain information that is useful to the cost
accounting department.
D. Material requisitions authorize the transfer of materials from the
production floor to the raw materials warehouse.
E. Material requisitions are routinely linked to a bill of materials that
lists all of the materials needed to complete a job. Correct Answers D.
Material requisitions authorize the transfer of materials from production
floor to the raw materials warehouse
Pruitt Company has developed an integrated system that coordinates the
flow of all goods, services, and information into and out of the
organization, working with raw material vendors as well as customers to
improve service and reduce costs. The firm is said to be using: Correct
Answers supply chain management
the assignment of direct labor cost to individual jobs is based on Correct
Answers the actual time spent on each job multiplied by the wage rate
the total production cost of a job is composed of Correct Answers direct
material, direct labor, and applied manufacturing overhead
VERIFIED ANSWERS |100% CORRECT | ALREADY GRADED
A
product costing in a manufacturing firm is the process of... Correct
Answers assigning costs to the firm's inventory
Which of the following statements is true?
A. Service firms have little need for determining the cost of their
services.
B. The concept of product costing is relevant only for manufacturing
firms.
C. The cost of year-end inventory appears on the balance sheet as an
expense.
D. Service companies use cost information for planning and control
purposes.
E. Mining and petroleum companies have no inventorial costs. Correct
Answers D. Service companies use cost information for planning and
control purposes
Which of the following manufacturers would most likely use job-order
costing?
A. Chemical manufacturers.
B. Microchip processors.
C. Custom-furniture manufacturers.
D. Gasoline refiners.
,E. Fertilizer manufacturers. Correct Answers C. Custom-furniture
manufacturers
A custom-home builder would likely utilize: Correct Answers job order
costing
5. Which of the following types of companies would most likely use
process costing?
A. Aircraft manufacturers.
B. Textile manufacturers.
C. Textbook publishers.
D. Custom-machining firms.
E. Shipbuilders. Correct Answers B. Textile manufacturers
A manufacturing firm produces goods in accordance with customer
specifications, commencing production upon receipt of a purchase
order. To accumulate the cost of each order, the company would use a:
Correct Answers job cost record
A typical job-cost record would provide information about all of the
following items related to an order except:
A. the cost of direct materials used.
B. administrative costs.
C. direct labor costs incurred.
D. applied manufacturing overhead.
, E. direct labor hours worked. Correct Answers B. administrative costs
8. Which of the following statements about material requisitions is
false?
A. Material requisitions are often computerized.
B. Material requisitions are a common example of source documents.
C. Material requisitions contain information that is useful to the cost
accounting department.
D. Material requisitions authorize the transfer of materials from the
production floor to the raw materials warehouse.
E. Material requisitions are routinely linked to a bill of materials that
lists all of the materials needed to complete a job. Correct Answers D.
Material requisitions authorize the transfer of materials from production
floor to the raw materials warehouse
Pruitt Company has developed an integrated system that coordinates the
flow of all goods, services, and information into and out of the
organization, working with raw material vendors as well as customers to
improve service and reduce costs. The firm is said to be using: Correct
Answers supply chain management
the assignment of direct labor cost to individual jobs is based on Correct
Answers the actual time spent on each job multiplied by the wage rate
the total production cost of a job is composed of Correct Answers direct
material, direct labor, and applied manufacturing overhead
