CHAPTER 19: JOB ORDER COSTING
1. Cost accounting systems measure, record, and report product costs.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.27 - Managerial Accounting Features/Costs
ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
3. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product
that passes through the factory.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 19: Job Order Costing
4. A process cost accounting system provides for a separate record of the cost of each particular quantity of product that
passes through the factory.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
5. A process cost accounting system provides product costs for each of the departments or processes within the factory.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
6. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable
from each other during a continuous production process.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 19: Job Order Costing
7. The process cost system is appropriate where few products are manufactured and each product is made to customers'
specifications.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
8. A job order cost system would be appropriate for a crude oil refining business.
a. True
b. False
ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
9. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and
finished goods in job order costing systems.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 19: Job Order Costing
10. When the goods are sold, their costs are transferred from Work in Process to Finished Goods.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
11. The materials requisition serves as the source document for debiting the accounts in the materials ledger.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
12. Materials are transferred from the storeroom to the factory in response to materials requisitions.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
13. The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
1. Cost accounting systems measure, record, and report product costs.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.27 - Managerial Accounting Features/Costs
ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
3. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product
that passes through the factory.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 19: Job Order Costing
4. A process cost accounting system provides for a separate record of the cost of each particular quantity of product that
passes through the factory.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
5. A process cost accounting system provides product costs for each of the departments or processes within the factory.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
6. A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable
from each other during a continuous production process.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
,Chapter 19: Job Order Costing
7. The process cost system is appropriate where few products are manufactured and each product is made to customers'
specifications.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.ACBSP.APC.35 - Process Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
8. A job order cost system would be appropriate for a crude oil refining business.
a. True
b. False
ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-01 - 19-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
9. Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and
finished goods in job order costing systems.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
, Chapter 19: Job Order Costing
10. When the goods are sold, their costs are transferred from Work in Process to Finished Goods.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
11. The materials requisition serves as the source document for debiting the accounts in the materials ledger.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
12. Materials are transferred from the storeroom to the factory in response to materials requisitions.
a. True
b. False
ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
13. The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.
a. True
b. False
ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.19-02 - 19-02
ACCREDITING STANDARDS: ACCT.ACBSP.APC.34 - Job Order Costing
ACCT.IMA.07 - Cost Management
BUSPROG: Analytic
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
