Multiple choice
1. The type of product costing system used by a company is dictated by the :
a) plant supervisor
b) project manager
c) company president
d) production process
2. Activity based costing traces production costs to
a) activities within the company
b) departments within the company
c) workers within the company
Matching
_ 1. Process Costing System
_ 2. Schedule of equivalent production
_ 3. Unit cost of analysis schedule
_ 4. Cost summary schedule
_ 5. Equivalent production(equivalent units)
_ 6. Conversio costs
_ 7. FIFO costing method
_ 8. average costing method
a. process costing method that assumes beginning work in process was started and completed during the period
b. combined direct labor and manufacturing overhead costs that are often incurred uniformly throughout the production process
c. the schedule used to distribute costs during the period to ending work in process inventory and transferred units
d. the accounting method used when large quantities of identical products are being produced
e. process costing method in which cost flow follows product flow
f. the schedule that computes a cost-per-unit figure
g. whole units producted, taking into consideration partially completed units
h. the schedule in which equivalent unit production is computed.
1. A
2. A
matching
1. D
2. H
3. F
4. C
5. G
6. B
7. E
8. A
Multiple Choice:
1. The type of product costing system used by a company is dictated by the:
d) production process
2. Activity based costing traces production costs to:
a) activities within the company
Matching:
_ 1. Process Costing System
e. process costing method in which cost flow follows product flow
_ 2. Schedule of equivalent production
h. the schedule in which equivalent unit production is computed.
_ 3. Unit cost of analysis schedule
f. the schedule that computes a cost-per-unit figure
_ 4. Cost summary schedule
c. the schedule used to distribute costs during the period to ending work in process inventory and transferred units
_ 5. Equivalent production(equivalent units)
g. whole units producted, taking into consideration partially completed units
_ 6. Conversion costs
b. combined direct labor and manufacturing overhead costs that are often incurred uniformly throughout the production process
_ 7. FIFO costing method
a. process costing method that assumes beginning work in process was started and completed during the period
_ 8. Average costing method
d. the accounting method used when large quantities of identical products are being produced
1. The type of product costing system used by a company is dictated by the:
The correct answer is (d) production process. The type of product costing system used by a company is determined by the nature of its production process. Different production processes require different costing systems to accurately allocate costs to the final products.
2. Activity based costing traces production costs to:
The correct answer is (a) activities within the company. Activity-based costing is a costing methodology that assigns costs to specific activities within a company. It traces the costs of each activity to the products or services that directly or indirectly use those activities.
Matching:
1. Process Costing System - e) process costing method in which cost flow follows product flow
2. Schedule of equivalent production - h) the schedule in which equivalent unit production is computed
3. Unit cost of analysis schedule - f) the schedule that computes a cost-per-unit figure
4. Cost summary schedule - c) the schedule used to distribute costs during the period to ending work in process inventory and transferred units
5. Equivalent production (equivalent units) - g) whole units produced, taking into consideration partially completed units
6. Conversion costs - b) combined direct labor and manufacturing overhead costs that are often incurred uniformly throughout the production process
7. FIFO costing method - d) the accounting method used when large quantities of identical products are being produced
8. Average costing method - a) process costing method that assumes beginning work in process was started and completed during the period
I hope this helps clarify the answers and the reasoning behind them. Let me know if you have any further questions!