Accounting Tools For Business Decision Making Actual Test Questions And Solutions Comprehensive Review Package

ACCOUNTING TOOLS FOR BUSINESS
DECISION MAKING ACTUAL TEST
QUESTIONS AND SOLUTIONS
COMPREHENSIVE REVIEW PACKAGE

●● examples of variable costs
Answer: - direct materials
- direct labor (wages of assembly workers)
-


●● examples of a manufacturers direct costs
Answer: - wages of assembly workers
- direct materials


●● examples of a manufacturers indirect costs
Answer: - tools used to create the prducts
- the factory accountants salary


●● best description of a product cost
Answer: cost directly associated with the production of a good, recorded
as inventory until product is sold

, ●● "3 pieces of the pie"
Answer: direct materials, direct labor, and factory overhead


●● when do you use job order costing systems?
Answer: for customized products


●● The cost of any raw materials used in production of a customized
product should be transferred out of the "Raw Materials Inventory"
account and into...
Answer: works in progress inventory


●● The cost of any direct labor used in production of a customized
product should be recorded in what account?
Answer: also works in progress inventory


●● what are the four steps for accoungint for overhead?
Answer: 1) set the predetermiend overhead rate
2) apply estimated overhead rate to jobs
3) record actual overhead
4) adjust overhead


●● what account is ajusted to account for differences in overhead?
Answer: cost of goods sold