Reference no: EM131139257

A major purpose of cost accounting is to 1- provide information to stockholders for investment decision 2- measure, record, and report product costs 3- classify all costs as operating or non-operating, 4-measure, record, and report period costs

The 2 basic types of cost accounting systems are : 1- job order and process cost systems 2- job order and job accumulation systems 3- process cost and batch systems 4- job order and batch systems

A process cost system would most likely be used by a company that makes 1- breakfast cereal 2- college graduation announcements 3- motion pictures 4- repairs to automobiles

Which of the following would be accounted for using order cost system ? 1- the production of cars 2- the refining of petroleum 3- the production of personal computers 4- the construction of a new campus building ?

The flow of costs in a job order cost system 1- involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done . 2- measures product costs for a set time period 3- cannot be measured until all jobs are complete 4- generally follows a LIFO cost flow assumption

The entry to record the acquisition of raw materials on account is : 1- Raw materials /inventory accounts payable 2- work in process /inventory accounts payable 3- accounts payable /raw materials inventory , or 4- manufacturing overhead/ raw materials inventory/ accounts payable

Time tickets should be approved by 1- the payroll department 2- the audit committee 3- co-workers 4- then employee's supervisor

The labor costs that have been identified as indirect labor should be charged to 1- direct labor 2- the individual jobs worked on 3- salary expense 4- manufacturing overhead

Manufacturing overhead is applied to each job 1- by means of a predetermined overhead rate 2- at the time when the overhead cost is incurred 3- only if the overhead costs can be directly traced to that job 4- at the end of the year when actual costs are known

A process cost accounting system is most appropriate when 1- the focus of attention is on a particular job order 2- A variety of different products are produced, each one requiring different types of materials , labor, and overhead 3- similar products are mass- produced 4- individual products are custom made to the specifications of customers

Which of these best reflects a distinguishing factor between a job order cost system and a process cost system ? 1- the manufacturing cost elements included 2- the detail at which costs are calculated 3- the time period each covers 4-?the number of work in process accounts

In process cost accounting, manufacturing costs are summarized on a 1- process order cost sheet 2- job order cost sheet 3- production cost report 4- manufacturing cost sheet

In a process cost system , product costs are summarized : 1- on production cost reports 2- after each unit is produced 3- when the products are sold 4- on job cost sheets

Which of the following is considered a difference between a job order cost and a process cost system ? 1- the flow of costs 2- Documents used to track costs 3- The manufacturing cost elements 4- The accumulation of the costs of materials , labor, and overhead

The costs that are easiest to trace directly to products are : 1- direct materials and direct labor 2- direct labor and overhead 3- direct materials and overhead 4- none of the above; all 3 costs are equally easy to trace to the product

Often the most difficult part of computing accurate unit costs is determining the proper amount of _______to assign to each product , service, or job. 1- direct materials 2- direct materials and direct labor 3-direct labor, 4- overhead

The last step in activity- based costing is to 1- identify the cost driver that has a strong correlation to the activity cost pool 2- assign overhead costs to products , using overhead rates determined for each cost pool 3- identify and classify the activities involved in the manufacture of specific products, and allocate overhead to cost pools 4- compute the activity based overhead rate per cost driver

The 1st step in activity - based costing is to 1- compute the activity- based overhead rate per cost driver 2- identify and classify the activities involved in the manufacture of specific products , and allocate overhead to cost pools 3- assign overhead costs to products, using overhead rates determined for each cost pool 4- identify the cost driver that has a strong correlation to the activity cost pool

A well designed activity based costing system starts with 1- computing the activity- based overhead rate 2- identifying the activity cost pools 3- assigning overhead costs to products 4- analyzing the activities performed to manufacture a product

An example of an activity cost pool is 1- number of inspections 2- machine hours 3- setting up machines 4- number of set ups

Assume you are a member of an accounting consulting firm, advising a law firm on the advisability of selecting a process costing or a job costing structure for your firm. Assume that the law firm provides litigation, estate planning and corporate legal services with multiple levels of billing rates. Which costing method should be recommended and why?

Shi Importers' balance sheet shows $300 million in debt, $50 million in preferred stock, and $250 million in total common equity. Shi's tax rate is 30%, rd = 6%, rps = 6.1%, and rs = 11%. If Shi has a target capital structure of 30% debt, 5% preferred stock, and 65% common stock, what is its WACC? Round your answer to two decimal places.

Using the perpetual inventory system, I have been Given a trial balance with cost of goods sold (600,000) and Inventory (17,700) I need to make the adjustment of Inventory as of stocktake (18,000). could you explain how this is done? and how it affects the balance of COGS?