Which of the following is one reason that estimated overhead costs rather than actual overhead costs are used in the costing process?

a)Managers want to know the accounting system's valuation of completed jobsbefore the end of the period.

b)Managers are more concerned with maximizing profits and do not want to waste time.

c)Customers do not want to pay the actual costs because they believe that management will have no reason to be efficient.

d)Actual costs cannot be determined accurately.

Under a job costing system, the amount of the journal entry to record the transfer of inventory from work in progress to finished goods is the sum of the costs charged to which of the following jobs?

a)Jobs started during the period

b)Jobs in progress during the period

c)Jobs almost completed during the period

d)Jobs completed during the period

Which of the following statements is correct when referring to job-order costing?

a)Job-order costing would be appropriate for a textbook publisher.

b)All the costs appearing on a job cost sheet are actual costs.

c)Indirect materials are charged to a specific job.

d)Job-order costing is mainly used in firms with homogeneous products such as oil refineries.

True or False

1. Managerial accounting is primarily concerned with external users of the organization rather than with segments of the organization.
2. Managerial accounting places more emphasis on standards than financial accounting.
3. Direct labor is a part of both prime cost and conversion cost.
4. Wages paid to administrative staff would be considered direct labor.
5. Direct material cost combined with manufacturing overhead cost is known as conversion cost.
6. Advertising is a product cost as long as it promotes specific products.
7. Although depreciation is always a period cost in a merchandising firm, it can be a product cost in a manufacturing firm.
8. In a manufacturing firm, all costs are product costs.
9. The cost of shipping direct material from a supplier is considered a product cost.
10. If the finished goods inventory increases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold.