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Cost Accounting 1

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

Direct material costs are

a)

Prime and conversion costs

b)

Prime and manufacturing costs

c)

Conversion and manufacturing costs

d)

Prime, conversion and manufacturing costs

2.

Utilities expense incurred in production facilities (e.g., water, heat and light) is classified as

a)

Factory overhead

b)

Period cost

c)

Prime cost

d)

Administrative overhead

3.

Actual, normal and standard cost systems may be used in conjunction with

a)

Process costing only

b)

Job order costing only

c)

Either job order or process costing

d)

Neither job order nor process costing

4.

Which one is most likely to use process costing in accounting for production costs?

a)

Road builder

b)

Electrical contractor

c)

Newspaper publisher

d)

Automobile repair shop

5.

In job order cost system, direct labor costs usually are recorded initially as an increase in

a)

Factory overhead applied

b)

Factory overhead control

c)

Finished goods

d)

Work in process

6.

In job order costing, the application of Factory Overhead would be reflected in the general ledger as an increase in

a)

Factory overhead control

b)

Finished goods

c)

Work in process

d)

Cost of goods sold

7.

In a well controlled materials system, the Purchasing agent performs the following activities except the

a)

placing of purchase orders with suppliers

b)

receiving of purchase requisitions

c)

approving and checking invoices

d)

preparation of purchase order

8.

The receiving department does all of the following except:

a)

unloads and unpacks incoming materials

b)

keeps informed concerning sources of supply, prices, and delivery schedules

c)

matches materials received with descriptions on purchase orders

d)

arranges for inspection, when necessary

9.

The purchasing department performs all of the following functions except:

a)

compares quantities received with the suppliers' packing list

b)

receives purchase requisitions for materials

c)

keeps informed concerning sources of supply, prices and delivery schedules

d)

prepares and places purchase orders

10.

In a job order cost system, the use of direct materials previously purchased usually is recorded as an increase in:

a)

Work in process

b)

Factory overhead control

c)

Factory overhead applied

d)

Materials Inventory