accounting 2 smart book questions
Companies that use job-order costing make Blank______. Multiple choice question. a very few products in large numbers many different products
b
The type and quantity of each type of direct material needed to complete a unit of product is listed on the Blank______. Multiple choice question. time ticket bill of materials production order materials requisition form
b
what is The level of sales at which profit is zero?
break-even point
A SERVICE firm that would most likely use job-order costing is a Blank______. Multiple choice question. clothing shop car manufacturer law practice
c
An allocation base is a(n) Blank______. Multiple choice question. activity that causes overhead costs to change measure used to assign all manufacturing costs to products and services common measure used to assign overhead costs to products and services
c
Direct materials costs are recorded on the job cost sheet when the Blank______. Multiple choice question. job is sold to a customer requisition form is submitted to the storeroom clerk materials are issued to the job job is complete
c
If the contribution margin is not sufficient to cover fixed expenses: Group of answer choices total profit equals total expenses. contribution margin is negative. a loss occurs. variable expenses equal contribution margin.
c
The type and quantity of each type of direct material needed to complete a unit of product is listed on the Blank______. Multiple choice question. production order time ticket bill of materials materials requisition form
c
Which of the following is not a manufacturing cost category? Multiple choice question. Manufacturing overhead Direct materials Selling & administrative costs Direct labor
c
what is A ratio computed by dividing contribution margin by sales?
contribution margin ratio
An essential quality of an overhead allocation base is that it must Blank______. Multiple choice question. be a cost associated with producing the firm's goods vary with all overhead costs be calculated using a predetermined overhead rate be common to all the company's products and services
d
If the degree of operating leverage is 4, then a one percent change in quantity sold should result in a four percent change in: Group of answer choices unit contribution margin. revenue. variable expense. net operating income.
d
The formula for applying overhead to a specific job is: Blank______ amount of allocation base incurred by job. Multiple choice question. estimated manufacturing overhead × estimated manufacturing overhead ÷ predetermined overhead rate ÷ predetermined overhead rate ×
d
The document that provides an hour-by-hour summary of the employee's activities throughout the day is called a Blank______. Multiple choice question. time ticket production order materials requisition form job cost sheet
A
The document that records the materials, labor, and manufacturing overhead costs charged to a job is the Blank______. Multiple choice question. job cost sheet time ticket production order materials requisition form
A
Select all that apply Assigning manufacturing overhead to product is complicated because Blank______. Multiple select question. it is an indirect cost it consists of many types of costs many companies have large amounts of variable overhead
A B
Select all that apply The unit product cost is the same as the Blank______. Multiple select question. total job cost divided by number of units average product cost per unit cost that would be incurred if another unit were produced incremental unit cost
A B
Select all that apply Categories of manufacturing costs include Blank______. Multiple select question. manufacturing overhead direct materials selling expenses direct labor administrative expenses
A B D
Select all that apply A bill of materials contains the Blank______. Multiple select question. type of each direct material needed to complete a unit of product type of materials to be drawn from the storeroom quantity of each direct material needed to complete a unit of product quantity of materials to be drawn from the storeroom
A C
Select all that apply Assigning manufacturing overhead to product is complicated because Blank______. Multiple select question. it consists of many types of costs many companies have large amounts of variable overhead it is an indirect cost
A C
Select all that apply Manufacturing overhead Blank______. Multiple select question. contains both fixed and variable costs is directly traceable to units produced consists of many different types of costs is an indirect cost
A C D
Select all that apply A job cost sheet contains Blank______ the job. Multiple select question. materials costs charged to the selling price of selling costs charged to manufacturing overhead charged to labor costs charged to
A D E
A bill of materials contains the Blank______. Multiple select question. quantity of each direct material needed to complete a unit of product quantity of materials to be drawn from the storeroom type of each direct material needed to complete a unit of product type of materials to be drawn from the storeroom
A and C
SPL Enterprises assigns overhead based on number of machine hours. For the upcoming year, they plan to use a total of 250,000 machine hours and 50,000 direct labor hours. Total overhead cost is expected to be $500,000. The predetermined overhead rate per machine hour is $
2
Companies that use job-order costing make Blank______. Multiple choice question. a. many different products b. a very few products in large numbers
A
Companies use a predetermined overhead rate rather than an actual overhead rate because Blank______. Multiple choice question. a predetermined rate is more accurate an actual rate is not known until the end of the period it is impossible to calculate an actual rate a predetermined rate is easier to calculate and apply
B
To obtain the dollar sales volume necessary to attain a given target profit, which of the following formulas should be used? Group of answer choices (Fixed expenses + Target net profit)/Total contribution margin (Fixed expenses + Target net profit)/Contribution margin ratio Fixed expenses/Contribution margin per unit Target net profit/Contribution margin ratio
B
Select all that apply Categories of manufacturing costs include Blank______. Multiple select question. administrative expenses manufacturing overhead direct materials direct labor selling expenses
B C D
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find Blank______. Multiple choice question. actual overhead the total cost of the job overhead applied to the job the predetermined overhead rate for the joB
C
Which of the following is not a manufacturing cost category? Multiple choice question. Direct labor Manufacturing overhead Selling & administrative costs Direct materials
C
Which of the following would be considered direct materials in a service firm that uses job-order costing? Multiple choice question. Scissors at a hair salon Tools in an auto repair shop Paperwork at a law firm Beds in a hospital
C
Which of the following would not be considered a job in a service firm that uses job-order costing? Multiple choice question. A patient in a hospital A repair job at an auto repair shop The tax department in an accounting firm A client at a law firm
C
Why is the unit product cost different from the cost that would be incurred if another (additional) unit were produced? Multiple choice question. The cost that would be incurred if another unit were produced cannot be calculated. The predetermined overhead rate changes with each unit produced. The unit product cost is an average, not an incremental cost. There would be no additional cost to produce another unit.
C
Direct materials costs are recorded on the job cost sheet when the Blank______. Multiple choice question. requisition form is submitted to the storeroom clerk job is complete job is sold to a customer materials are issued to the job
D
The document that provides an hour-by-hour summary of the employee's activities throughout the day is called a Blank______. Multiple choice question. production order job cost sheet materials requisition form time ticket
D
Which of the following is not a manufacturing cost category? Multiple choice question. Direct labor Direct materials Manufacturing overhead Selling & administrative costs
D
Which of the following would not be considered a direct labor cost in a service firm that uses job-order costing? Multiple choice question. The salary of an attorney at a law firm. The salary of a surgeon at a hospital. The wages of technicians at an auto repair shop. The salary of the manager at a hair salon.
D
The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find Blank______. Multiple choice question. overhead applied to the job the total cost of the job actual overhead the predetermined overhead rate for the job
a
Which of the following is an assumption underlying standard CVP analysis? Group of answer choices In multiproduct companies, the sales mix is constant. In manufacturing companies, inventories always change. The price of a product or service is expected to change as volume changes. Fixed expenses will change as volume increases.
a
All hours on computerized time tickets are automatically posted directly to job cost sheets. True false question.TrueFalse
false
Job-order costing can only be used in manufacturing firms. True false question.TrueFalse
false
what is A measure of how sensitive net operating income is to a given percentage change in unit sales?
operating leverage
Companies that make many different products each period use (?)- (?)costing.
job-order
what is Estimating the level of sales needed to achieve a desired target profit
target profit analysis
In a Cost-Volume-Profit graph (sometimes called a break-even chart), unit volume is represented on the horizontal (X) axis and dollars on the vertical (Y) axis. Group of answer choicesTrueFalse
true
One reason to use a predetermined overhead rate is to eliminate the effect of seasonal factors. True false question.TrueFalse
true
The margin of safety is the amount by which sales can decrease before losses are incurred by the company. Group of answer choices True/False
true
