Cost Accounting and Control Quiz (2)

What does COGM stand for?

• Cost of Goods Marketing

• Cost of Goods Measurement

• Cost of Goods Manufactured

• Cost of Goods Management

Which of the following is NOT a component of Total Manufacturing Cost?

• Sales Revenue

• Manufacturing Overhead Applied

• Direct Labor

• Direct Materials Used

What is the primary input in a service organization?

• Direct materials

• Direct labor

• Manufacturing overhead

• Finished goods

In job-order costing, how is each job treated?

• As a combined cost object

• As a separate cost object

• As a fixed cost

• As a variable cost

Which industry is an example of job-order costing?

• Oil refining

• Food canning

• Custom furniture

• Pharmaceuticals

What is the main difference between job-order costing and process costing?

• Process costing is for unique jobs

• Job-order is for homogeneous products

• Process costing is for discrete jobs

• Job-order is for customized jobs

What does the term 'spoilage' refer to in job-order costing?

• Loss of materials

• Direct labor costs

• Cost of goods sold

• Overhead costs

What is the purpose of activity-based costing (ABC)?

• To reduce overhead

• To simplify cost allocation

• To improve cost accuracy

• To eliminate waste

Which costing method uses actual costs for direct materials and labor but applies overhead using a predetermined rate?

• Actual costing

• Normal costing

• Variable costing

• Standard costing

What is the main advantage of standard costing?

• It allows for performance evaluation

• It is the simplest method

• It uses actual costs

• It is the most accurate method