Managerial Accounting Chapter 2:
Multiple Choice Practice with
question and answer 2024-2025
a - correct answer ✅Cost accounting involves the
measuring, recording, and reporting of:
a. product costs
b. future costs
c. manufacturing processes
d. managerial accounting decisions
c - correct answer ✅A company is more likely to
use a job order cost system if:
a. it manufactures a large volume of similar products
b. its production is continuous
c. it manufactures products with unique
characteristics
d. it uses a periodic inventory system
b - correct answer ✅In accumulating raw materials
costs, companies debit the cost of raw materials
purchased in a perpetual system to:
a. Raw Materials Purchases
b. Raw Materials Inventory
c. Purchases
, Managerial Accounting Chapter 2:
Multiple Choice Practice with
question and answer 2024-2025
d. Work in Process
c - correct answer ✅When incurred, factory labor
costs are debited to:
a. Work in Process
b. Factory Wages Expense
c. Factory Labor
d. Factory Wages Payable
c - correct answer ✅The flow of costs in job order
costing:
a. begins with work in process inventory and ends
with finished goods inventory
b. begins as soon as a sale occurs
c. parallels the physical flow of materials as they are
converted in to finished goods and then sold
d. is necessary to prepare the cost of goods
manufactured schedule
d - correct answer ✅Raw materials are assigned to
a job when:
Multiple Choice Practice with
question and answer 2024-2025
a - correct answer ✅Cost accounting involves the
measuring, recording, and reporting of:
a. product costs
b. future costs
c. manufacturing processes
d. managerial accounting decisions
c - correct answer ✅A company is more likely to
use a job order cost system if:
a. it manufactures a large volume of similar products
b. its production is continuous
c. it manufactures products with unique
characteristics
d. it uses a periodic inventory system
b - correct answer ✅In accumulating raw materials
costs, companies debit the cost of raw materials
purchased in a perpetual system to:
a. Raw Materials Purchases
b. Raw Materials Inventory
c. Purchases
, Managerial Accounting Chapter 2:
Multiple Choice Practice with
question and answer 2024-2025
d. Work in Process
c - correct answer ✅When incurred, factory labor
costs are debited to:
a. Work in Process
b. Factory Wages Expense
c. Factory Labor
d. Factory Wages Payable
c - correct answer ✅The flow of costs in job order
costing:
a. begins with work in process inventory and ends
with finished goods inventory
b. begins as soon as a sale occurs
c. parallels the physical flow of materials as they are
converted in to finished goods and then sold
d. is necessary to prepare the cost of goods
manufactured schedule
d - correct answer ✅Raw materials are assigned to
a job when:
