Practest02 - Practest02 True/False Indicate whether the...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Practest02 True/False Indicate whether the sentence or statement is true or false. ____ 1. Managerial accounting information includes both historical and estimated data. ____ 2. Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change. ____ 3. A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities. ____ 4. A staff department has no direct authority over a line department. ____ 5. The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost. ____ 6. For a construction contractor, the wages of carpenters would be classified as factory overhead cost. ____ 7. Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost. ____ 8. Factory overhead cost is sometimes referred to as factory burden. ____ 9. Conversion cost is the combination of direct materials cost and factory overhead cost. ____ 10. The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold. ____ 11. A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory. ____ 12. A process cost accounting system accumulates costs for each of the departments or processes within the factory. ____ 13. A job order cost system would be appropriate for a crude oil refining business. ____ 14. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems. ____ 15. When the goods are sold, their costs are transferred from Work in Process to Finished Goods. ____ 16. The materials requisition serves as the source document for debiting the accounts in the materials ledger. ____ 17. The document that serves as the basis for recording direct labor on a job cost sheet is the clock card. ____ 18. Depreciation expense on factory equipment is part of factory overhead cost.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
____ 19. Factory overhead is applied to production using a predetermined overhead rate. ____ 20. If factory overhead applied exceeds the actual costs, overhead is said to be underapplied. ____ 21. Nonmanufacturing costs are generally classified into two categories: selling and administrative. ____ 22. The current year's advertising costs are normally considered period costs. ____ 23. Direct labor cost is an example of a period cost. ____ 24. Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges. ____ 25.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/22/2009 for the course ACCT 2301 taught by Professor Staff during the Spring '08 term at Texas Tech.

Page1 / 21

Practest02 - Practest02 True/False Indicate whether the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online