16e GNB CH02 TB, Chapter 2, Job-Order Costing:
Calculating Unit Product Costs Testbank
,True/False
[QUESTION]
1. A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
2. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources.
Answer: T
Difficulty: 2 Medium
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
3. An employee time ticket is an hour-by-hour summary of the employee’s activities throughout the day.
Answer: T
Difficulty: 1 Easy
Learning Objective: 02-Other
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
4. The formula for computing the predetermined overhead rate is:
Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead
cost
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-01
Topic Area:
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
,5. Generally speaking, when going through the process of computing a predetermined overhead rate, the estimated total
manufacturing overhead cost is determined before estimating the amount of the allocation base.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
6. If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a
predetermined overhead rate is used.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
7. Actual overhead costs are not assigned to jobs in a job costing system.
Answer: T
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
8. The amount of overhead applied to a particular job equals the actual amount of overhead caused by the job.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
9. If the overhead rate is computed annually based on the actual costs and activity for the year, the manufacturing
overhead assigned to any particular job can be computed as soon as the job is completed.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
, Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
10. Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost
incurred in completing a job.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
11. In a job-order cost system, indirect labor is assigned to a job using information from the employee time ticket.
Answer: F
Difficulty: 3 Hard
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
12. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide
reasonably accurate unit product costs because of the averaging process.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
13. A job cost sheet is used to record how much a customer pays for the job once the job is completed.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
Calculating Unit Product Costs Testbank
,True/False
[QUESTION]
1. A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
2. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources.
Answer: T
Difficulty: 2 Medium
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
3. An employee time ticket is an hour-by-hour summary of the employee’s activities throughout the day.
Answer: T
Difficulty: 1 Easy
Learning Objective: 02-Other
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
4. The formula for computing the predetermined overhead rate is:
Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead
cost
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-01
Topic Area:
Bloom’s: Remember
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
,5. Generally speaking, when going through the process of computing a predetermined overhead rate, the estimated total
manufacturing overhead cost is determined before estimating the amount of the allocation base.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-01
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
6. If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a
predetermined overhead rate is used.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
7. Actual overhead costs are not assigned to jobs in a job costing system.
Answer: T
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
8. The amount of overhead applied to a particular job equals the actual amount of overhead caused by the job.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
9. If the overhead rate is computed annually based on the actual costs and activity for the year, the manufacturing
overhead assigned to any particular job can be computed as soon as the job is completed.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-02
Topic Area:
, Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
10. Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost
incurred in completing a job.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
11. In a job-order cost system, indirect labor is assigned to a job using information from the employee time ticket.
Answer: F
Difficulty: 3 Hard
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
12. If the allocation base in the predetermined overhead rate does not drive overhead costs, it will nevertheless provide
reasonably accurate unit product costs because of the averaging process.
Answer: F
Difficulty: 1 Easy
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
[QUESTION]
13. A job cost sheet is used to record how much a customer pays for the job once the job is completed.
Answer: F
Difficulty: 2 Medium
Learning Objective: 02-03
Topic Area:
Bloom’s: Understand
AACSB: Reflective Thinking
AICPA: BB Critical Thinking
AICPA: FN Measurement
Feedback:
