INTRODUCTION TO MANAGERIAL ACCOUNTING 5TH EDITION Test Bank Complete Verified Study Pack for Exam Preparation and Revision Updated 2026–2027 Edition

Test-Bank-for-Introduction-to-Managerial-Accounting-5th-Edition-Brewer,-Garrison,-Noreen




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Chapter 02
Systems Design: Job-Order Costing

True / False Questions



1. Joborder!!costing!!would!!beL moreL likelyL toL beL usedL thanL processL costingL inL situationsL
whereLmanyL differentL productsL orL servicesL areL producedL eachL periodL toL customerL
specifications.L True False



2. InL aL joborderL costingL system,L costsL areL tracedL toL departmentsL andL thenL allocatedL toL
unitsL ofLproductL usingL anL averageL process.
True False



3. JoborderL costingL isL usedL inL thoseL situationsL whereL unitsL ofL aL productL areL
homogeneous,LsuchL asL inL theL manufactureL ofL sugar.
True False



4. JoborderL costingL isL usuallyL notL usedL inL serviceL organizationsL suchL asL hospitalsL
andL lawLfirms.
True False



5. TheL threeL costL categoriesL appearingL onL aL jobL costL sheetL are:L sellingL expense,L
manufacturingLexpense,L andL administrativeL expense.
True False



6. TheL laborL timeL ticketL containsL theL detailsL ofL howL muchL timeL anL employeeL takesL onL
eachL taskLthroughoutL theL day.
True False




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7. InL orderL toL improveL theL accuracyL ofL unitL costs,L mostL companiesL
recomputeL theLpredeterminedL overheadL rateL eachL month.
True False



8. UseL ofL aL single,L plantwideL overheadL rateL isL generallyL appropriateL onlyL forL
veryL largeLmanufacturingL companies.
True False



9. PredeterminedL overheadL ratesL areL basedL onL actualL costL andL activityL
data.LTrue False



10. TheL followingL journalL entryL wouldL beL madeL toL applyL overheadL costL toL jobsL inL aL
job-orderLcostingL system:




True False



11. WhenL completedL goodsL areL sold,L theL transactionL isL recordedL asL aL debitL toL CostL ofL
GoodsLSoldL andL aL creditL toL WorkL inL Process.
True False



12. WhenL theL predeterminedL overheadL rateL isL basedL onL directL labor-hours,L theL amountL
ofL overheadL appliedL toL aL jobL isL proportionalL toL theL amountL ofL actualL directL labor-
hoursL incurredLonL theL job.
True False



13. ActualL manufacturingL overheadL costsL areL tracedL toL specificL
jobs.LTrue False




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14. ALcreditL balanceL inL theL ManufacturingL OverheadL accountL atL theL endL ofL theL yearL
meansL thatLoverheadL wasL underapplied.
True False



15. TheL sumL ofL allL amountsL transferredL fromL theL WorkL inL ProcessL accountL andL
intoL theLFinishedL GoodsL accountL representsL theL CostL ofL GoodsL ManufacturedL forL
theL period.L True False



16. TheL mostL commonL accountingL treatmentL ofL underappliedL manufacturingL overheadL
isL toLtransferL itL toL theL ManufacturingL OverheadL controlL account.
True False



MultipleL ChoiceL Questions



17. WhichL ofL theL followingL companiesL wouldL beL mostL likelyL toL useL aL job-orderL costingL
systemLratherL thanL aL processL costingL system?
A. fastL foodL restaurant
B. shipbuilding
C. crudeL oilL refining
D. candyL making



18. ComputingL unitL productL costsL involvesL averagingL in:




A. A
B. B
C. C
D. D




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