1.GAAP and IFRS both require what type of costing for external reporting for all companies? A. Absorption Costing B. Job-Order Costing C. Process Costing D. Activity-based Costing

2. If an organization's prime costs contained $20,000 of direct labor, and direct labor made up half of the prime costs, what is the organization's direct materials cost? A. $5,000 B. $0 C. $10,000 D. $20,000

3. If manufacturing overhead is underapplied in a job-order costing system during a period, the resulting adjusting entry would: A. Reduce operating income B. Increase operating income C. Increase cost of goods sold D. Reduce period costs

4. If a manufacturing organization largely produces custom, made-to-order yachts, the best costing system to use for their operations would be: A. Job-order costing B. Process costing C. Selling-based costing D. Negative costing

1.GAAP and IFRS both require what type of costing for external reporting for all companies? A. Absorption Costing B. Job-Order Costing C. Process Costing D. Activity-based Costing 2. If an organization's prime costs contained $20,000 of direct labor, and direct labor made up half of the prime costs, what is the organization's direct materials cost? A. $5,000 B. $0 C. $10,000 D. $20,000 3. If manufacturing overhead is underapplied in a job-order costing system during a period, the resulting adjusting entry would: A. Reduce operating income B. Increase operating income C. Increase cost of goods sold D. Reduce period costs 4. If a manufacturing organization largely produces custom, made-to-order yachts, the best costing system to use for their operations would be: A. Job-order costing B. Process costing C. Selling-based costing D. Negative costing