1. A logical way to allocate building maintenance costs to departments would be based on:

Select one:

A.Machine hours

B.Number of employees

C.Labor hours

D.Square feet of floor space

2. Activity-Based Costing (ABC) is useful in:

Select one:

A.Breaking down FOH into one overhead rate

B.Breaking down FOH more accurately into cost drivers

C.Breakdown COGS into DL, DM, and FOH

D.Breaking down DL and DM by product

3. Activity-Based Costing is best explained by which of the following statements?

Select one:

A.Calculating costs sequentially by the order that they affect the production process.

B.Ordering all costs alphabetically for easier cataloging in a database.

C.More accurately tracking materials and labor costs for each product.

D.Accumulating and allocating overhead costs based on a variety of activity drivers.

4. In a Job Order Costing System, each job would have its own:

Select one:

A.Factory Overhead Account

B.Materials Account

C.Labor Accounting

D.Work in Process (WIP)

5. In a job order costing system:

Select one:

A.Each department accumulates costs and then allocates them to all units produced.

B.The processes involved in manufacturing products are essentially identical for all products.

C.Production generally happens in a "continual flow".

D.The end products are relatively homogenous.

E.None of the above

6. In a small balance remains in the Factory Overhead Account at year end, it would be transferred to:

Select one:

A.Work in Process

B.Finished Goods

C.Cost of Goods Sold

D.Miscellaneous Expense

7. Job Order Costing would be useful in accounting for:

Select one:

A.Production of desks

B.Production of baseballs

C.Production of paperclips

D.Production of wedding invitations