Which of the following statements describe a primary difference in job costing between service companies and manufacturing companies? Multiple Choice Service companies' overhead accounts have slightly different names. All of these. Service companies' finished goods are charged to Cost of Services Billed. Service companies generally use fewer direct materials.
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Which of the following statements describe a primary difference in
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- Which of the following statements Is false regarding Job-order costing? Multiple Choice It is used in situations where many different products, each with unique features, are produced each period. It is used for manufacturing companies, but not service companies. It accumulates each job's costs on a job cost sheet. It can be used to calculate a job's unit product cost.Which of the following statements is true?a. Job-order costing is used only in manufacturing firms.b. Process costing is used only for services.c. Job-order costing is simpler to use than process costing because the recordkeepingrequirements are less.d. The job cost sheet is subsidiary to the work-in-process account.e. All of theseAccounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Using the following information, determine the overhead rates and the actual cost assigned for each of the…
- Which one of the following is not correct about job - order costing systems and process costing systems? a. Job order costing systems and process costing systems use similar manufacturing accounts. . b. Job order costing systems normally used when there are varieties of products to produced. C. In process costing systems cost accumulation is done on a department basis. d. Job order costing systems and process costing systems have different flow of costs through manufacturing accounts. e. None of the given answersThe printing industry has become highly automated. Job costing in the printing industry would likely have the following general framework. Job cost equals: None of these answer choices are correct. direct materials cost, plus outside purchase costs, plus overhead cost applied on the basis of labor hours. direct materials cost, plus conversion costs applied on the basis of labor hours. direct materials cost, plus direct labor cost plus applied overhead based on machine hours. materials purchases, labor incurred and applied overhead based on labor hoursWhich of the following statements is false? (You may select more than one answer.)a. Absorption costing assigns fixed and variable manufacturing overhead costs toproducts.b. Job-order costing systems are used when companies produce many different typesof products.c. A normal costing system assigns costs to products by multiplying the actualo verhead rate by the actual amount of the allocation base.d. A company such as Coca-Cola is more likely to use a process costing system thana job-order costing system.
- Which of the following statements related to job cost sheets is TRUE? Job cost sheets do not normally include the selling price of the job completed. a. b. Actual manufacturing overhead costs are included in job cost sheets. O c. None of the given answers is TRUE. O d. Individual job cost sheets are used by companies which produce socks. O e. Ajob cost sheet includes selling and administrative costs.Which one of the following is not correct about job-order costing systems ?and process costing systems Job order costing systems normally used when there are varieties .of products to produced Job order costing systems and process costing systems use similar b O .manufacturing accounts Job order costing systems and process costing systems have .c O .different flow of costs through manufacturing accounts None of the given answers d O In process costing systems cost accumulation is done on a .e O .department basisAssigning manufacturing overhead to a specific job is complicated by all of the following except: Multiple Choice Manufacturing overhead is an indirect cost that is either impossible or difficult to trace to a particular job. Manufacturing overhead is incurred only to support some jobs. Manufacturing overhead consists of both variable and fixed costs. The average cost of actual fixed manufacturing overhead expenses will vary depending on how many units are produced in a perio
- Which of the following statements regard operations costing is not correct? Multiple Choice Operation costing is used in manufacturing goods that have some common characteristics plus some individual characteristics. Operation costing is a hybrid of job and process costing. All of these are correct statements. Operation costing combines the aspect of job costing that assigns materials separately to jobs (also called work orders or batches in operation costing) with the aspect of process costing that assigns conversion costs equally to each operation. Any given company must choose between a job order costing system, a process costing system, or an operation costing system.Which of the following is true of job order cost systems? a.Job order cost systems provide product costs for each manufacturing department or process. b.Examples of companies that use job order cost systems would be oil refineries, paper producers, chemical processors, and food processors. c.Job order cost systems are not widely used. d.Job order cost systems are often used by companies that manufacture custom products for customers or batches of similar products.Which one of the following is not correct about job-order costing systems and process costing systems? O a Job order costing systems and process costing systems use similar manufacturing accounts. O b. None of the given answers Oc In process costing systems cost accumulation is done on a department basis. Od. Job order costing systems and process costing systems have different flow of costs through manufacturing accounts, O e. Job order costing systems normally used when there are varieties of products to produced. Which one of the following is not correct regarding the predetermined overhead rate? O a The predetermined overhead rate is normally calculated at the beginning of the period. Ob. The predetermined overhead rate is used to assign manufacturing overhead costs to cost objects such as products. OC None of the given answers. O d. The predetermined overhead rate uses actual figures for the manufacturing overhead cost but estimated figures for the cost allocation basis amount. O…