BUS 3041 WEEK 1 QUIZ

 1. Question : Which of the following statements is correct concerning job-order costing?   Student Answer:  Job-order costing would be appropriate for a textbook publisher.    All the costs appearing on a job cost sheet are actual costs.    Indirect materials are charged to a specific job.    Job-order costing is mainly used in firms with homogeneous products such as oil refineries.   Instructor Explanation: Textbooks can vary in many ways so job order costing would be a good fit for this industry. BUS 3041 WEEK 1 QUIZ Question 2. Question : Job-order costing is used in manufacturing companies and process costing is used in service companies.   Student Answer:  True    False   Instructor Explanation: Either costing methods can be used in either types of companies. Question 3. Question : A flour manufacturer is more likely to use process costing than job-order costing whereas a manufacturer of customized leather jackets is more likely to use job-order costing than process costing.   Student Answer:  True    False   Instructor Explanation: Job costing is more appropriate when costs are traceable such as in customized orders. Question 4. Question : Which of the following types of companies would typically use process costing rather than job-order costing?   Student Answer:  A small appliance repair shop.    A manufacturer of commercial passenger aircraft.    A specialty equipment manufacturer.    A breakfast cereal manufacturer.   Instructor Explanation: Many of the stages of production of food items are difficult to trace to a specific product so process costing is a better fit. Question 5. Question : Including manufacturing overhead costs in product costs ensures that each product will earn a profit.   Student Answer:  True    False   Instructor Explanation: This ensures that we have good cost information, not necessarily a profit. Question 6. Question : Normally a job cost sheet is not prepared for a job until after the job has been completed.   Student Answer:  True    False   Instructor Explanation: This sheet is prepared at the beginning and costs are tracked onto it. Question 7....

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