Ch 4_SM_16 Solutions.pdf - CHAPTER 4 JOB COSTING 4-1 Define cost pool cost tracing cost allocation and cost-allocation base Cost poola grouping of

Ch 4_SM_16 Solutions.pdf - CHAPTER 4 JOB COSTING 4-1 Define...

This preview shows page 1 - 3 out of 70 pages.

4-1 CHAPTER 4 JOB COSTING 4-1Define cost pool, cost tracing, cost allocation, and cost-allocation base. 4-2How does a job-costing system differ from a process-costing system? 4-3Why might an advertising agency use job costing for an advertising campaign by PepsiCo, whereas a bank might use process costing to determine the cost of checking account deposits? 4-4Describe the seven steps in job costing. The seven steps in job costing are (1) identify the job that is the chosen cost object, (2) identify the direct costs of the job, (3) select the cost-allocation bases to use for allocating indirect costs to the job, (4) identify the indirect costs associated with each cost-allocation base, (5) compute the rate per unit of each cost-allocation base used to allocate indirect costs to the job, (6) compute the indirect costs allocated to the job, and (7) compute the total cost of the job by adding all direct and indirect costs assigned to the job. 4-5Give examples of two cost objects in companies using job costing. 4-6Describe three major source documents used in job-costing systems.
Image of page 1
4-2 Three major source documents used in job-costing systems are (1) job cost record or job cost
Image of page 2
Image of page 3

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture