Acct Exam 1

Using multiple department factory overhead rates instead of a single plant-wide factory overhead rate:

Results in more accurate product costs

Which of the following would most likely be a period cost?

Salary of telephone receptionist in the sales office (selling or administration)

One of the following will not be found on the balance sheet.

COGS

For which of the following businesses would the job order cost system be appropriate?

Construction contractor (custom)

Job order costing and process costing are

Cost accounting systems

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Job order cost system

Everest Co. uses a plant-wide factory overhead rate based on direct labor hours. Overhead costs would be overcharged to which of the following departments?

A labor-intensive department

Which of the following would be most likely to use process costing?

A lawn fertilizer manufacturer (Not custom)