Accounting Chapter 18

All of the following statements are true regarding cost accounting systems EXCEPT

A company must use either a job order cost system for all of its products/services or a process cost system for all of its products/services- it cannot use both

Which of the following accounts will NEVER be included in the inventory accounts on the balance sheet for a baking company?

President's salary

Job cost sheets can be used to determine...

Product costs

A hotel will use a job order cost system for which of the following expenses?

Room service

Which of the following must be considered in order for a business to make sound strategic and operational decisions?

- Declining ecosystems, urbanization, and climate change - Resource scarcity - Population growth

Managerial accounting information can be used for...

- Determining the selling price - Evaluating product costs - Determining the effect of changes in product costs

Which of the following is the flow of manufacturing costs?

- Materials - Work in process - Finished goods - Cost of goods sold

Which of the following is NOT one of the five phrases in the management process?

Analyzing

Neon lighting is comparing actual and applied overhead amounts at the end of the year and finds the factory overhead account has a credit balance. What does this mean?

Applied costs are higher than actual costs

The predetermined factory overhead rate is used to...

Apply overhead to jobs

Formula for cost of goods manufactured:

Beginning Work in Process Inventory + Total Manufacturing Costs - Ending Work in Process Inventory

A job order cost system can be used by a hospital to...

Charge patients for services provided

Which one of the following is NOT an example of a common eco-friendly measure as given in the textbook?

Direct labor efficiency

New management techniques that consider issues of scare resources, declining ecosystems, and climate change are tied to sustainability and...

Eco-efficiency measures

The forms of managerial accounting information that help managers evaluate the savings generated by using fewer natural resources in a company's operations are...

Eco-efficiency measures

Managerial accounting information uses...

Historical and estimated data

All of the following would NOT be considered a conversion cost by a baking company?

The cost of flour

A service organization using a job order cost system will typically charge supplies and materials to...

The department using the supplies and include them in overhead costs