Module 2

The reduction of inventories is an objective of: total quality management. just-in-time production. activity-based costing. computer-controlled manufacturing systems.

JIT

The cost of goods manufactured is credited to which of the following accounts? Cost of Goods Sold Revenue Raw Materials Work in Process

WIP

Which of the following is not a manufacturing cost? Direct materials Direct labor Accounting department costs Manufacturing overhead

acctg dept cost

Which the following is a method of applying overhead? Just-in-time production Activity-based costing Total quantity management Computer-controller manufacturing systems

activity based costing

Which of the following is added directly to Work in Process? Indirect labor Indirect materials factory depreciation direct labor

direct labor

T or F: Overapplied overhead occurs when actual overhead exceeds applied overhead.

false

Which of the following is not a period cost? Overtime premiums Sales Commissions Advertising costs General office salaries

overtime

Which of the following companies would use a process costing system? Paint producer Specialty printing company Construction company Shipbuilding company

paint producer

The overhead allocation rate is calculated by dividing: actual overhead costs by the actual quantity of the allocation base. the actual overhead costs by the estimated quantity of the allocation base. the estimated overhead costs by the actual quantity of the allocation base. the estimated overhead costs by the estimated quantity of the allocation base

the estimated overhead costs by the estimated quantity of the allocation base

T or F: Indirect labor costs include the cost of production supervisors.

true