A. Job OrderCosting would be most suitable to account for the manufacture of:

a. buildings

b. breakfast cereal

c. motor cars

d. computer keyboards

B. For which of the following products is a process costing system most appropriate?

a. breakfast cereal

b. automobiles

c. houses

d. furniture

C. Cost of Goods Manufactured (COGM) is needed to calculate:

a. Cost of Sales (COS)

b. Factory overhead rate

c. Direct materials used

d. Finished goods inventory

D. Which of the following is an inventory account of a manufacturer, but not of a retailer (eg. supermarket)?

a. Cost of goods manufactured (COGM)

b. Products inventory

c. Work in Progress (WIP)

d. Direct labour (wages)

E. What purpose does a Job Cost Sheet / Record serve?

a. Lists total materials, labour, and overhead costs charged to a job

b. Is managements internal document that helps to control cost in a job cost system

c. Both of the above ( a&b)

d. None of the above

F. A key difference between job order costing and process costing is that:

a. Costs are assigned to direct materials in job costing and to indirect materials in process costing

b. Job costing uses a single work in process account and process costing uses a separate work in process account for each department

c. Job order costing, but not process costing, uses conversion costs

d. Factory overhead is used in process costing but not in job order costing.

G. Which of the following is a period cost?

a. Materials

b. Direct Labour

c. Factory Overhead

d. Selling and Marketing Expenses

H. In process costing, lost units in production will

Choose: (increase) (decrease) (no change) (equivalent-unit costs).

I. Work in process (WIP) considerations are relevant in job order costing.:

True / False