State whether the following are true or false: mki8 a A job order cost system is most
Question:
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.
Step by Step Answer:
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