11. A new advertising agency serves a wide range of clients including manufacturers, restaurants, service business, department store and other retail establishments. The accounting system the advertising agency will most likely to adopt in record keeping in accumulating cost is a Job-order costing b. Operation costing c. Relevant costing d. Process costing 12. Which of the following items is not included in (charged to) factory overhead? a Factory depreciation and supplies. b. Costs of service departments c. Costs of marketing departments d. Costs of maintenance departments. 13. In job order cost system, direct labor costs usually are recorded initially as an increase in. a. Factory overhead applied b. Factory overhead control c. Finished goods control d. Work in process control 14. In a job-cost system, factory (manufacturing) overhead is An indirect Cost of Jobs A necessary Element of Production a. No b: No C. Yes Yes No Yes No d. Yes 15. A non-manufacturing organization may use a Job order costing but not process costing b. Process costing but not job-order costing C. Either job-order or process costing d. Neither job-order costing nor process costing. Answer the question briefly. 1. Discuss the importance of cost accounting for a business.