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    Costing-Variances,job costing, process costing etc.,

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    Dear student,
    Question 21: Which of the following is a trait of a functional-based cost management system?
    a) unit-based drivers
    b) tracing intensive
    c) use of both financial and non-financial measures of performance
    d) detailed activity information
    Ans: d) detailed activity information

    Question 22: _______________ is a unit-costing method that excludes prior-period work and costs in computing current-period unit work and costs.
    a) FIFO costing method
    b) Transferred-in cost
    c) Weighted average method
    d) Equivalent units
    Ans: b) Transferred-in cost

    Question 23:_______________ is devoted to providing information for external users.
    a) Management accounting
    b) Financial accounting
    c) Internal accounting
    d) Cost accounting
    Ans: b) Financial accounting

    Question 24: Jacob Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively.

    Data on standard service hours and number of employees are as follows:

    Maint. Person. Dept. Dept.
    Dept. Dept. X Y

    Standard service hours used 100 50 300 150
    Number of employees 5 10 45 45

    Direct labor hours 50 50 250 250

    Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.

    What is the overhead rate for Department Y assuming the direct method is used?
    a) $218.00
    b) $120.00
    c) $250.00
    d) $109.00

    Question 25: A(n) _______________ is a computerized information system that strives to input data once and make it available to people across the company for different purposes.
    a) cost management information system
    b) enterprise resource planning system
    c) internal accounting system
    d) financial accounting information system
    Ans; b) enterprise resource planning system

    Question 26: Goal congruence can be defined as:
    a) an incentive plan arranged so the managers goals are allied with the shareholders' goals
    b) managers operating the business in the best interest of the shareholders
    c) tying management rewards to shareholder results
    d) all of the above are correct
    Ans: d) all of the above are correct

    Question 27: Ring Company produces two types of product: Small and Large. Two work orders for two batches of the products are shown below, along with some additional cost information:

    Small Large
    Work Order 10 Work Order 11
    Direct materials (actual costs) $45,000 $75,000

    Applied conversion costs:
    Mixing ? ...

    Solution Summary

    The solution contains the answers for twenty questions covering job costing, process costing, variances, allocation of joint costs, computation of toal overhead costs etc.,