ACCT 2301 Chapter 5 Test Questions Answered Correctly Latest Update 2025-2026
Which of the following is the assignment process used with normal costing?
a.
Actual direct labor cost is assigned to products, but direct material and overhead costs are
assigned using predetermined rates.
b.
Actual direct materials cost is assigned to products, but direct labor and overhead costs are
assigned using predetermined rates.
c.
All manufacturing costs are assigned using predetermined rates.
d.
Actual direct material and direct labor costs are assigned to products, but overhead costs are
assigned using predetermined rates.
e.
Actual direct materials, actual direct labor and actual overhead cost are assigned to products. -
Answers actual direct material and direct labor costs are assigned to products, but overhead
costs are assigned using predetermined rates
Which method of measuring costs associated with production is more widely used in practice?
a.
normal costing
b.
actual costing
c.
both are used equally.
d.
neither one is used.
e.
,cannot be determined. - Answers normal costing
Which of the following is not true about job-order costing?
a.
It is used in firms that produce homogeneous products.
b.
The cost of each job is accumulated on the job-order cost sheet.
c.
The key document for accumulating manufacturing costs is the job-order cost sheet.
d.
All of these are correct.
e.
None of these are correct. - Answers it is used in firms that produce homogeneous products
Production costs consist of direct materials, direct labor, and overhead.
True
False - Answers true
A normal job-order costing system is a system that uses:
a.
estimated costs for direct materials, direct labor, and overhead.
b.
actual costs for direct materials and overhead, estimated costs for direct labor.
c.
actual costs for direct materials and direct labor and estimated costs for overhead.
d.
actual costs for direct materials and estimated costs for direct labor and overhead. - Answers
actual costs for direct materials and direct labor and estimated costs for overhead
In a normal costing system, actual overhead is used to arrive at the cost of goods manufactured.
,True
False - Answers fasle
The predetermined overhead rate is usually calculated
a.
at the beginning of each month.
b.
at the end of each month.
c.
at the end of the year.
d.
at the beginning of the year. - Answers at the beginning of the year
Actual overhead is reconciled with applied overhead at the beginning of the period.
True
False - Answers false
The difference between actual overhead and applied overhead is called an overhead variance.
True
False - Answers true
In an actual cost system, actual direct materials, actual direct labor and estimated overhead are
used to determine unit cost.
True
False - Answers false
Manufacturing overhead
a.
consists of all manufacturing costs other than direct materials and direct labor.
b.
consists of all costs other than direct materials and direct labor.
, c.
consists of all costs other than direct materials.
d.
consists of all manufacturing costs other than direct materials. - Answers consists of all
manufacturing costs other than direct materials and direct labor
The three manufacturing cost elements are direct materials, direct labor, and overhead.
True
False - Answers true
Which of the following costs is not included on a job-order cost sheet?
a.
direct material costs
b.
direct labor costs
c.
actual plantwide overhead costs
d.
applied plantwide overhead costs - Answers actual plantwide overhead costs
The document that lists the total cost for a single job is a
a.
job-order cost sheet.
b.
materials requisition form.
c.
time ticket.
d.
purchase order.
Which of the following is the assignment process used with normal costing?
a.
Actual direct labor cost is assigned to products, but direct material and overhead costs are
assigned using predetermined rates.
b.
Actual direct materials cost is assigned to products, but direct labor and overhead costs are
assigned using predetermined rates.
c.
All manufacturing costs are assigned using predetermined rates.
d.
Actual direct material and direct labor costs are assigned to products, but overhead costs are
assigned using predetermined rates.
e.
Actual direct materials, actual direct labor and actual overhead cost are assigned to products. -
Answers actual direct material and direct labor costs are assigned to products, but overhead
costs are assigned using predetermined rates
Which method of measuring costs associated with production is more widely used in practice?
a.
normal costing
b.
actual costing
c.
both are used equally.
d.
neither one is used.
e.
,cannot be determined. - Answers normal costing
Which of the following is not true about job-order costing?
a.
It is used in firms that produce homogeneous products.
b.
The cost of each job is accumulated on the job-order cost sheet.
c.
The key document for accumulating manufacturing costs is the job-order cost sheet.
d.
All of these are correct.
e.
None of these are correct. - Answers it is used in firms that produce homogeneous products
Production costs consist of direct materials, direct labor, and overhead.
True
False - Answers true
A normal job-order costing system is a system that uses:
a.
estimated costs for direct materials, direct labor, and overhead.
b.
actual costs for direct materials and overhead, estimated costs for direct labor.
c.
actual costs for direct materials and direct labor and estimated costs for overhead.
d.
actual costs for direct materials and estimated costs for direct labor and overhead. - Answers
actual costs for direct materials and direct labor and estimated costs for overhead
In a normal costing system, actual overhead is used to arrive at the cost of goods manufactured.
,True
False - Answers fasle
The predetermined overhead rate is usually calculated
a.
at the beginning of each month.
b.
at the end of each month.
c.
at the end of the year.
d.
at the beginning of the year. - Answers at the beginning of the year
Actual overhead is reconciled with applied overhead at the beginning of the period.
True
False - Answers false
The difference between actual overhead and applied overhead is called an overhead variance.
True
False - Answers true
In an actual cost system, actual direct materials, actual direct labor and estimated overhead are
used to determine unit cost.
True
False - Answers false
Manufacturing overhead
a.
consists of all manufacturing costs other than direct materials and direct labor.
b.
consists of all costs other than direct materials and direct labor.
, c.
consists of all costs other than direct materials.
d.
consists of all manufacturing costs other than direct materials. - Answers consists of all
manufacturing costs other than direct materials and direct labor
The three manufacturing cost elements are direct materials, direct labor, and overhead.
True
False - Answers true
Which of the following costs is not included on a job-order cost sheet?
a.
direct material costs
b.
direct labor costs
c.
actual plantwide overhead costs
d.
applied plantwide overhead costs - Answers actual plantwide overhead costs
The document that lists the total cost for a single job is a
a.
job-order cost sheet.
b.
materials requisition form.
c.
time ticket.
d.
purchase order.
