Which of the following ideal describes expense allocation?A) A element that web links in a systematic method an indirect cost or group of indirect prices to a price object.B) The assigning that indirect cost to the chosen expense object.C) A team of individual price items.D) The assigning the direct price to the chosen object.

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How does a job-costing mechanism differ from a process-costing system?A) A Job-costing system assigns price to masses of comparable units; a process-costing mechanism assigns cost to distinctive units.B) A job-costing equipment assigns expense to unique units; a process-costing assigns cost to masses of comparable units C) A process-costing system allocates indirect costs to assets to product; a task costing mechanism does not allocate indirect cost to productsD) A job-costing system allocates indirect expense to products; a process-costing system does not allocate indirect expense to products.
B) A job-costing systems assigns price to distinct units; a process-costing assigns cost to masses of similar units
Why might an advertising firm use project costing for an advertising project by Pepsi, whereas a financial institution might use procedure costing to identify the cost of check account deposits?A) project costing have the right to be offered to compute the cost of masses of similar services, in contrast procedure costing permits all the particular aspects of each job to be figured out individually.B) one advertising agency provides the same organization to all its clients, if a financial institution supplies its client with dedicated services. For that reason an advertising company would use task costing to monitor the expense of one advertising project by Pepsi.C) whenever a product or business is distinct or distinct, procedure costing is the many efficient method to assign cost. As such since every banking transaction is unique, the financial institutions use process costing to identify the price of checking account deposits.D) job costing permits all the certain aspects that each job to be identified, whereas process costing deserve to be offered to compute the expense of numerous identical or comparable services.
D) job costing permits all the details aspects of each task to be identified, whereas process costing can be used to compute the expense of numerous identical or similar services.
Step 1: determine the job that is the chosen expense object.Step 2: determine the direct price of the job.Step 3: pick the cost-allocation bases to use for allocation indirect expense to the job.Step 4: identify the indirect cost associated with each cost-allocation base.Step 5: Compute the price per unit of every cost-allocation base offered to allocate indirect cost to the Job.Step 6: Compute the indirect cost allocated to the job.Step 7: Compute the complete cost of the task by adding all direct and also indirect cost assigned to the job.
The two major cost objects that manger focus on in providers using project costing areA) solved cost and variable costs.B) cost pool and also cost allocation base.C) straight cost and indirect costs.D) products or jobs and also responsibility centers or departments.
Identify three significant source papers used in job-costing systems.A) accounts receivable aging report, accounts payable aging report,and inventory manage reportB) genreal journal, general ledger, and also trial balanceC) job cost record (sheet), materials requisition record, and also labor time recordD) balance sheet, earnings statement, and also cosh circulation statement
Identify the main problem about source documents used to prepare job-cost records.A) timeliness that the records- ensuring the the records are obtainable when neededB) accuracy the the records- incorrect record of amounts, incorrect task numbers, materials being "borrowed" for an additional jobC) safeguarding the record from occasions such together theft or fireD) no one of the above
B) accuracy that the records- incorrect recording of amounts, incorrect project numbers, products being "borrowed" for one more job
Identify the reason(s) why most establishments use one annual period rather 보다 a weekly or monthly duration to compute budgeted indirect-cost rates.A) The molecule reason- the longer time period, the less affect of seasonal patterns.B) The denominator reason- the longer the time period, the less the effect of sport in calculation levels on the assignment of fixed cost.C) neither A or B.D) Both A and B.
Distinguish between actual costing and normal costing.A) really costing and normal costing different in their usage of yes, really or budgeted indirect-cost rates.B) actual costing and normal costing differ in their use of really or budgeted direct-cost rate.C) yes, really costing and normal costing different in their use of yes, really or budgeted amounts of direct-cost inputsD) yes, really costing and normal costing differ in their usage of yes, really or budgeted amounts of expense allocation bases.
Identify the ways in which a residence construction firm may use job-cost information.A) (a) to identify the profit of individual jobs, (b) to assist in bidding top top future jobs, and (c) come evaluate experts are in fee of controlling individual jobsB) (a) to divide the complete cost of building all the houses by the total number of houses developed to obtain an average price of house, and (b) come apple the mean per-unit price to every of the identical or comparable houses built in the period.C) (a) to report profit results to shareholders, and (b) to report taxable revenues to taxation authoritiesD) nobody of the above.
A) (a) to determine the profit of individual jobs, (b) to help in bidding ~ above future jobs, and also (c) come evaluate experts are in fee of managing individual jobs
Determine even if it is this statement is true or false. "In a normal-costing system, the amounts in the manufacturing Overhead Allocated account will always equal the quantity in the manufacturing Overhead Allocated account"A) The statement is true.B) the statement is false.
Identify three different debit entries come the Work-in-Process manage T-account under typical costing.A) straight materials use, direct manufacturing job billed come a job, manufacturing overhead allocated come a jobB) direct materials purchased, manufacturing overhead incurred, completion and transfer of tasks to finished goodsC) direct materials purchased, indirect manufacturing labor paid to employees, production overhead incurredD) direct materials purchased, completion and also transfer of jobs finished good, revenue of perfect goods
A) direct materials use, straight manufacturing job billed come a job, manufacturing overhead allocated come a job
Identify the ideal way(s) to dispose that under-or end allocated overhead costs. A) (1) Proration to products inventory, finished goods and cost of an excellent sold, (2) Yea-end write-off to occupational in procedure inventory, (3) Restatement of every overhead entries using budgeted indirect cost rates quite than really indirect cost.B) (1) Proration to all operating cost accounts, (2) Year-end write-off to miscellaneous expense, (3) Restatement of all overhead entries using budgeted indirect cost rates fairly than actual indirect cost.C) (1) Proration to job-related in process, perfect goods and cost of goods sold, (2) Year-end write-off to cost of items sold, (3) Restatement of all overhead entries utilizing actual indirect cost rates rather than budgeted indirect cost rates.D) No entry is required to dispose of over or under-under-allocated overhead.
C) (1) Proration to work-related in process, finished goods and also cost of goods sold, (2) Year-end write-off to price of products sold, (3) Restatement of every overhead entries using actual indirect cost rates rather than budgeted indirect cost rates.
A firm might usage budgeted cost rather 보다 actual expense to compute direct-labor prices becauseA) the budgeted expense will an outcome in lower corporate revenue taxes.B) the budgeted cost are much more accurate C) the budgeted cost will an outcome in a greater gross margin.D) it may be challenging to trace straight labor cost to tasks as they space completed.
Modern an innovation such as electronic Data Interchange (EDI) is valuable to manages becauseA) it lowers manufacturing B) it rises product top quality C) it rises manufacturing productivityD) it provides them with quick and accurate product-cost info that facilitates the management and control the jobs.

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D) it provides them through quick and also accurate product-cost info that facilitates the management and control of jobs.
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