Chapter 04 - Instructor Homework - Solutions

Chapter 04 - Instructor Homework - Solutions -...

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Chapter 4 Homework - SOLUTIONS       1
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2) 
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Raw  materials that can be traced to a cost object are an example of an indirect cost.  Answer:  
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FALSE  Explanation:  
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Raw materials are an  Diff: 1  Terms: 
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direct costs of a  cost object, indirect  costs of a cost  object  Objective: 
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AACSB: 
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Reflective thinking 11) 
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Actual  costing is  a method of job costing that allocates an indirect cost based on the actual indirect - cost rate times the actual quantity of the  cost - allocation base.   Answer:  
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TRUE  Diff: 1  Terms: 
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actual costing  Objective: 
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AACSB: 
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Reflective thinking 28) 
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Direct  costs are traced the same way for actual costing and normal costing.   Answer:  
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TRUE  Diff: 2  Terms: 
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actual costing,  normal costing  Objective: 
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AACSB: 
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Reflective thinking  31) 
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For  normal  costing, even though the budgeted indirect - cost rate is based on estimates, indirect costs are allocated to products based on  actual levels of the cost - allocation base.   Answer:  
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TRUE  Diff: 1  Terms: 
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normal costing,  budgeted indirect - cost rate, cost - allocation base  Objective: 
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AACSB: 
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Reflective thinking 32) 
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Work - in - Process Control will be decreased (credited) for the amount of direct - labor costs incurred.   Answer:  
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FALSE  Explanation:  
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Work - in - Process Control  will be increased  (debited) for the amount  of direct - labor costs  incurred. 
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Diff: 1  Terms: 
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job - costing system  Objective: 
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AACSB: 
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Reflective thinking 40) 
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This note was uploaded on 11/19/2010 for the course ACCOUNTING Cost taught by Professor B during the Spring '10 term at Oakton.

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Chapter 04 - Instructor Homework - Solutions -...

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