Ver. D MA

Ver. D MA - Quiz # 1-D Name: ID #: 1. Faculty of Management...

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1 Faculty of Management Technology Managerial Accounting II Spring 2011 Quiz # 1-D Name: ID #: Group #: Question 1: Short Essay: 1. How does a Job-Costing system differ from a Process-Costing system? 1- Job-costing system : is used by companies producing small quantities of distinct products or services, for example a home builder or an advertising agency. Job-costing systems accumulate and track costs separately for each product or service. 2- Process-costing system : is used by companies producing large quantities of identical or similar products, for example an oil refinery or a dairy or a steel mill. Process costing systems accumulate and track the costs of each batch and divide the total costs by the units produced to determine average unit cost. Question 2: True/false: 1. The actual costs of all individual overhead categories are recorded in the Manufacturing Overhead Control account. Answer : True 2 . Cost objects may be jobs, products, or customers. Answer : True 3. When actual indirect costs exceed allocated indirect costs, indirect costs have been overallocated. Answer : False 4. Normal costing assigns indirect costs based on an actual indirect-cost rate. Answer : False 5. Direct costs are allocated to the cost object using a cost-allocation method. Answer : False
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2 Question 3: Multiple Choice: 1 . Place the following steps in the order suggested by the seven steps used to assign costs to individual jobs: A. Identify indirect costs B. Compute the total cost of the job C. Select cost-allocation bases D. Compute the indirect cost rate a. ACDB b. DCAB c. BACD d. CADB 2. In a normal costing system, the Manufacturing Overhead Control account: a. is increased by allocated manufacturing overhead b. is credited with amounts transferred to Work-in-Process c. is decreased by allocated manufacturing overhead d. is debited with actual overhead costs
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Ver. D MA - Quiz # 1-D Name: ID #: 1. Faculty of Management...

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