ACCN FINAL TRUE/FALSE
The term joint cost is used to describe the cost incurred up to the spit-off point in a process involving joint products
True
When a company is involved in more than one activity in the entire value chain, it is vertically integrated
True
The cost reconciliation report has two sections: "Costs to be accounted for" followed by "Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out. Group starts
False
The cost reconciliation report has two sections: "Costs to be accounted for" followed by "Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period.
False
The cost reconciliation report has two sections: "Costs to be accounted for" followed by "Costs accounted for". The "Costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of beginning work in process inventory.
False
Two of the reasons why manufacturing overhead may be underapplied are: (1) the estimated total manufacturing overhead cost may have been too high; and (2) the estimated total amount of the allocation base may have been too low.
False
Under the weighted-average method, the cost of ending work in process inventory is determined by dividing the equivalent units of production for ending inventory by the cost per equivalent unit for each cost category and then summing the result.
False
If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be overapplied.
False
Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job
False
A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs
False
Future Costs that do differ among alternatives are not relevant in a decision
False
If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.
False
If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used
False
Sunk cost are never relevant in decision making
True
The cost reconciliation report has two section: "Cost to be accounted for" followed by "Cost accounted for". The "Costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out
True
