REVISION OF CHAP 7,8,9 (PART 1)

The difference in net profit between Absorption Costing and Marginal Costing is due to

• direct materials cost.

• fixed manufacturing overhead costs.

• direct labour cost.

• variable manufacturing overhead costs.

A method of calculating a product cost that includes variable and fixed manufacturing costs refers to

• Absorption Costing.

• Marginal Costing.

• Actual Costing.

• Normal Costing.

Which of the following are NOT inventoried under absorption costing?

• Direct materials

• Factory Utilities.

• Sales commissions.

• Indirect material

Companies that produce heterogeneous products typically used________

• Process costing

• Job order costing

• Absorption costing

• Marginal costing

Which of the following is NOT presented on the job cost sheet?

• Costs assigned to a specific job.

• Total costs of a completed job.

• Unit cost of a completed job.

• Cost of goods sold.

Which document shows the cost of direct materials, direct labour, and applied manufacturing overhead for each job?

• Time ticket

• Materials requisition form

• Job cost sheet

• Production cost report

Which one of the following is a source document that impacts the job cost sheet?

• Purchasing invoice

• Purchase orders.

• Time tickets.

• Delivery form.

Which items are NOT included in the Job Cost Sheet?

• Date completed.

• Date started.

• Cost summary.

• Equivalent unit.

Which of the following products would be used job order costing system?

• Chemicals.

• Cereal breakfast.

• Birthday cake.

• Soft drinks.

Which is a true statement about the process costing system?

• Cost accumulation by process.

• Costs are accumulated by job.

• Costs are summarized on job costs sheets.

• Cost per unit is not computed.