1009:ch.3

For a firm that does mass production & large production of homogenous badges, which product costing method is more applicable?

• Process Costing

• Job Costing

For a firm that does unique products in small batches, which product costing method is more applicable?

• Process costing

• Job Costing

Which of the following is typically NOT an inventory type for a manufacturer?

• Raw Material Inventory

• Service Inventory

• Work in Progress Inventory

• Finished Goods Inventory

The flow of costs for raw materials inventory can be visually organized in a T-account.

Is this statement correct: Raw material purchased are added on the "left-hand side" of a T-Account

• True

• False

For the "Predetermined Manufacturing Overhead Rate" (PMOHR), direct labor hours can be taken as "Total Estimation allocation base".

• True

• False

Under-allocated means, that we expected too high Manufacturing Overhead (MOH) costs at the beginning of the year

• True

• False

Service firms usually use these two figures to justify the amount they bill their clients (Select the two correct ones)

• Marketing Expenses

• Markup for Profit

• Total Operating expense

• Job Cost

Which three cost information can be found in a (Manufacturing) Job Cost Recording

• Direct Material

• Direct Labour

• Manufacturing Overhead

• Profit Margin