CHAPTER 2: JOB-ORDER COSTING: CALCULATING UNIT PRODUCT COSTS QUESTIONS WITH CORRECT ANSWERS|100% VERIFIED|12 pages

CHAPTER 2: JOB-ORDER COSTING: CALCULATING UNIT PRODUCT COSTS QUESTIONS WITH CORRECT ANSWERS The United States requires absorption costing for ______ financial reports. CORRECT ANSWER external All manufacturing costs are assigned to units of product and all nonmanufacturing costs are treated as period cost under ________ costing. CORRECT ANSWER absorption OR full Companies that make many different products each period use _______ - _______ costing. CORRECT ANSWER job order True or false: Job-order costing can only be used in manufacturing firms. CORRECT ANSWER False Select all that apply A bill of materials contains the ______. type of each direct material needed to complete a unit of product quantity of each direct material needed to complete a unit of product type of materials to be drawn from the storeroom quantity of materials to be drawn from the storeroom CORRECT ANSWER type of each direct material needed to complete a unit of product quantity of each direct material needed to complete a unit of product The most common approach to product costing throughout the world is ______ costing. CORRECT ANSWER absorption The type and quantity of materials to be drawn from the storeroom and the job that will be charged for the materials is specified on the ______. CORRECT ANSWER materials requisition form Costs assigned to units of product in absorption costing include ______ manufacturing costs. CORRECT ANSWER both variable and fixed Direct materials costs are recorded on the job cost sheet when the ______. CORRECT ANSWER materials are issued to the job Companies that use job-order costing make ______. CORRECT ANSWER many different products Select all that apply Labor charges that cannot be easily traced to a job are considered ______. indirect labor direct labor manufacturing overhead CORRECT ANSWER indirect labor manufacturing overhead A SERVICE firm that would most likely use job-order costing is a ______. CORRECT ANSWER law practice The type and quantity of each type of direct material needed to complete a unit of product is listed on the ______. CORRECT ANSWER bill of materials