HW 5 answers - NAME_ MATRICULA_ SECTION_ HOMEWORK 5...

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NAME_________________ MATRICULA__________ SECTION__________ Universidad Iberoamericana UNIBE When to Use Job-Order Costing 1. In a manufacturing environment, job-order cost accounting systems and process cost accounting systems differ in the way a. Costs are assigned to production runs and the number of units for which costs are averaged. b. Orders are taken and the number of units in the orders c. Product profitability is determined and compared with planned costs. d. Processes can be accomplished and the number of production runs that may be performed in a year. 2. How does a job-order cost system differ from a process cost system? a. Subsidiary ledgers for the work-in-process and finished goods inventories are necessary in job-order costing. b. The procedures to apply overhead to product costs are different. c. Both the timing and nature of entries to transfer cost from the WIP account to the finished goods inventory account are different. 3. In job-order costing, the basic document to accumulate the cost of each order is the a. Invoice b. Purchase order c. Requisition sheet d. Job-cost sheet 4. A company services office equipment. Some customers bring their equipment to the company’s service shop; other customers prefer to have the company’s service personnel come to their offices to repair their equipment. The most appropriate costing method for the company is a. A job-order costing system b. An activity-based costing system c. A process costing system d. An operation costing system HOMEWORK 5 – MANAGERIAL ACCOUNTING
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5. Two basic costing systems for assigning costs to products or services are job costing and process costing. These two costing systems are usually viewed as being on opposite ends of a spectrum. The fundamental criterion employed to determine whether job costing or process costing should be employed is a. Proportion of direct (traceable) costs expensed to produce the product or service. b.
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HW 5 answers - NAME_ MATRICULA_ SECTION_ HOMEWORK 5...

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