Period costs include: Selling and administrative costs All costs including direct materials and direct labor Selling, administrative and indirect costs Previous Next Raw materials is a(n): O Inventory asset account on the income statement Inventory asset account on the balance sheet Cost of goods sold account Previous Next Your company currently uses job order costing, but are starting to do one product on a continuous basis on one of the lines, due to a high demand. What might be a good course of action from a costing standpoint for the new line? Keep doing your job order costing for the special orders, and set the new line up either as one "job" that runs continuously, or do a process costing system for that product line. Do not begin doing the continuous product since you do not have a good costing system to accommodate hye change. Change the entire costing system over to process costing, Previous Next Materials, labor and overhead may be added: O In any processing department. On the bill of materials before starting the job. On the costing sheet for each job. Previous Next If you have 700 units completed, and transferred to process 2, with 500 units remaining in process 1,50% complete, what is the equivalent units of production for process 1 using the weighted average method? 1200 950 450 Previous Next Using the weighted average method, you are provided the following information: Beginning WIP 500 needing 25% yet to complete Units started and completed and moved to the next process-1000 units Ending WIP of 500 units that are 50% complete. What is your equivalent units of production for the period? 1375 1625 0 1750 Previous Next Service departments are those departments which: Provide services to the entire company, but do not produce a profit on their own. Don't make a profit for the company, so should be eliminated. Produce a profit of their own through the sales of their services. Previous Next You have recently been made aware that your purchasing department is spending five hours to source and purchase components for your deluxe line as opposed to only one hour to source and purchase components for your basic line. Which costing system may be more effective in this situation? ABC would give a clearer picture of the indirect costs involved. Traditional based costing would give a clearer picture of indirect costs involved. ABC would give a clearer picture of the direct costs involved. Previous Next Limitations of the ABC system include: It is easier to implement than a traditional costing method. It is very costly to implement. Managers enjoy the ABC system due to its simplicity. Previous Next Submit