Question 1 (1 point)

When a job has been completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a credit to Work in Process.

Question 1 options:

	True
	False

Question 2 (1 point)

Finished Goods are reported as an:

	expense on the income statement
	item on both the balance sheet and the income statement
	expense on the balance sheet
	asset on the income statement
	asset on the balance sheet

Question 3 (1 point)

A commercial aircraft manufacturer would use a _____ costing system.

	job order
	process

Question 4 (1 point)

A process costing system:

	uses a separate Work in Process account for each processing department.
	uses a single Work in Process account for the entire company.
	uses a separate Work in Process account for each type of product produced.
	does not use a Work in Process account in any form.

Question 5 (1 point)

In a process costing system, manufacturing overhead applied is usually recorded as a debit to:

	Finished goods.
	Work in process.
	Manufacturing overhead.
	Cost of goods sold.

Question 6 (1 point)

Variable costing and absorption costing net incomes may not be the same. If they are different, the amount of difference can be reconciled by analyzing the changes made to the inventory account during the period.

	True
	False

Question 7 (1 point)

Total variable costs:

	remain constant, regardless of the level of production
	increase as production increases
	decrease as production increases

Question 8 (1 point)

Manufacturing overhead combined with direct materials is known as conversion cost.

Question 8 options:

	True
	False

Question 9 (1 point)

Which of the following is not one of the three basic activities of a manager?

Question 9 options:

	Planning
	Controlling
	Decision making
	Compiling management accounting reports

Question 10 (1 point)

Which branch of accounting emphasizes relevance and timeliness?

Question 10 options:

	financial accounting
	managerial accounting