Job Order and Process Costing Quiz

Job order costing is most appropriate for:

• Oil refining

• Car manufacturing

• Custom furniture making

• Beverage production

In a job order cost system, costs are accumulated:

• By department

• By time period

• By batch or specific job

• By machine used

A job cost sheet is primarily used to:

• Calculate sales revenue

• Record overhead allocations only

• Track costs assigned to a particular job

• Track daily labor activity

Which of the following is a feature of job order costing?

• Costs are averaged over large volumes

• All products are identical

• Each job has unique characteristics

• No overhead is assigned

A job order costing system is likely to be used in:

• Cement production

• Legal services

• Soap manufacturing

• Paper milling

In job order costing, overhead is applied using:

• Actual overhead costs

• Direct labor hours always

• A predetermined overhead rate

• Sales commissions

Direct materials issued to a job are recorded on:

• Sales invoice

• Purchase order

• Materials requisition slip

• Balance sheet

A company producing special-order advertising displays would use:

• Process costing

• Activity-based costing

• Job order costing

• Standard costing

Which of the following is not a reason to use job order costing?

• Jobs vary in material and labor requirements

• Products are produced in high volume

• Customization is frequent

• Clients are billed individually

Under- or overapplied overhead occurs because:

• Actual and applied overhead are equal

• Costs are assigned perfectly

• Applied overhead is based on estimates

• Labor is always fixed