1 of 10

In which of the following industries could job costing be used?

	Food processing
	Machine shop and specialty manufacturing
	Bread making
	Cement production
	All of the above
	None of the above

Question

2 of 10

In which of the following ways is abnormal spoilage accounted for?

	Expensed in the period in which it occurred
	Included as part of the unit cost of output
	Written off to cost of goods sold
	Included in inventory valuation until year-end and then written off
	All of the above
	None of the above

Question

3 of 10

The following data apply to Easy Chairs Ltd:

Work In process inventory, beginning of the year $60,000

Manufacturing Overhead applied during the year $90,000

Work in process inventory, end of the year $70,000

Finished goods inventory, beginning of the year $50,000

Finished goods inventory, end of the year $35,000

Cost of goods sold during the year $420,000

Calculate the cost of goods manufactured during the year.

	$420 000
	$405 000
	$385 000
	$370 000
	All of the above
	None of the above

Question

4 of 10

Front office is a term used to identify activities where:

	customers have to wait to be served.
	staff seek to satisfy customer requirements.
	the office faces the street.
	staff avoid customers.
	All of the above
	None of the above

Question

5 of 10

Process costing is only suitable for products that are

	heterogeneous.
	homogeneous.
	harmonious.
	None of the given answers
	All of the above
	None of the above

Question

6 of 10

Softcloth Textile Pty Ltd manufactures a variety of fabrics. The Weaving Department had 1000 units in work in process on April 1, which were 20 per cent complete as to conversion costs. During April, 8000 units were completed and transferred. On April 30, 4000 units remained in work in process 50 per cent complete as to conversion costs. Using the weighted average method process costing, calculate the equivalent units of conversion for the month of April.

	12 000
	9000
	9800
	10 000
	All of the above
	None of the above

Question

7 of 10

The value chain for a merchandising entity is most likely to include which of the following costs.

	Marketing
	Design
	Research
	Conversion
	All of the above
	None of the above

Question

8 of 10

Total manufacturing cost includes

	direct material and direct labour in a job costing system.
	direct labour and manufacturing overhead in a process costing system.
	direct material, direct labour and manufacturing overhead in both job costing and process costing.
	direct labour and manufacturing overhead in both a job costing and a process costing system.
	All of the above
	None of the above

Question

9 of 10

Which of the following inventory valuation method/s is/are less suited to cost control?

	Weighted average costs
	First in first out cost
	Standard costs
	Weighted average costs AND standard costs
	All of the above
	None of the above

Question

10 of 10

Classifying costs as fixed and variable in a service entity enables managers to

	control costs.
	measure performance.
	cost services.
	cost organisational units.
	All of the above
	None of the above