State whether the following are true or false: mki8 a A job order cost system is most

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State whether the following are true or false: mki8 a A job order cost system is most suitable when the products manufactured differ in material and labor requirements.

b It is not necessary to be able to identify each job physically and segregate its related costs in a job order cost system.

c Raw materials and supplies used in production are purchased by each department indi- vidually.

d The usual first step in the manufacturing process is to obtain the raw materials that will be used in production from the storeroom.

e The sum of the labor cost and hours incurred on different jobs should be equal to the total labor cost and total labor hours for the period.

f Factory overhead application rates can be expressed only on one basis-direct labor hours.

g When factory overhead is accumulated on a factorywide level for distribution to several departments, each department will have the same rate.

h The form of a job order cost sheet varies by firm.

i Normal spoilage costs are considered to be an avoidable cost of producing good units.

i Abnormal spoilage is considered to be controllable by line or production personnel and is usually the result of inefficient operations.

k Abnormal spoilage is considered a part of the cost of production.

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Cost Accounting Concepts And Applications For Managerial Decision Making

ISBN: 9780070103108

2nd Edition

Authors: Ralph S. Polimeni, James A. Cashin, Frank J. Fabozzi, Arthur H. Adelberg

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