Test Bank For Introduction To Managerial Accounting 5Th Edition Brewer, Garrison

TEST,BANK,FOR,INTRODUCTION,TO,MANAGERIAL,ACCOUNTING,5TH,EDITION,BREWER,,GARRI
SON,2025,-,2026
Chapter,02
Systems,Design:,Job-Order,Costing
,,

True,/,False,Questions
,


1. Job-
order,costing,would,be,more,likely,to,be,used,than,process,costing,in,situations,where,man
y,different,products,or,services,are,produced,each,period,to,customer,specifications.,True,,
,,False

,


2. In,a,job-
order,costing,system,,costs,are,traced,to,departments,and,then,allocated,to,units,of,produ
ct,using,an,average,process.,True,,,,False
,


3. Job-
order,costing,is,used,in,those,situations,where,units,of,a,product,are,homogeneous,,such,a
s,in,the,manufacture,of,sugar.,True,,,,False
,


4. Job-
order,costing,is,usually,not,used,in,service,organizations,such,as,hospitals,and,law,firms.,Tr
ue,,,,False
,


5. The,three,cost,categories,appearing,on,a,job,cost,sheet,are:,selling,expense,,manuf
acturing,expense,,and,administrative,expense.,True,,,,False
,


6. The,labor,time,ticket,contains,the,details,of,how,much,time,an,employee,takes,on,e
ach,task,throughout,the,day.,True,,,,False
,
7. In,order,to,improve,the,accuracy,of,unit,costs,,most,companies,recompute,the,pred
etermined,overhead,rate,each,month.,True,,,,False



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,


8. Use,of,a,single,,plantwide,overhead,rate,is,generally,appropriate,only,for,very,large,
manufacturing,companies.,True,,,,False
,


9. Predetermined,overhead,rates,are,based,on,actual,cost,and,activity,data.,True,,,,Fal
se
,


10. The,following,journal,entry,would,be,made,to,apply,overhead,cost,to,jobs,in,a,job-
order,costing,system:



, ,,
True,,,,False
,


11. When,completed,goods,are,sold,,the,transaction,is,recorded,as,a,debit,to,Cost,of,Go
ods,Sold,and,a,credit,to,Work,in,Process.,True,,,,False
,


12. When,the,predetermined,overhead,rate,is,based,on,direct,labor-
hours,,the,amount,of,overhead,applied,to,a,job,is,proportional,to,the,amount,of,actual,dire
ct,labor-hours,incurred,on,the,job.,True,,,,False
,


13. Actual,manufacturing,overhead,costs,are,traced,to,specific,jobs.,True,,,,False
,
14. A,credit,balance,in,the,Manufacturing,Overhead,account,at,the,end,of,the,year,mea
ns,that,overhead,was,underapplied.,True,,,,False
,


15. The,sum,of,all,amounts,transferred,from,the,Work,in,Process,account,and,into,the,F
inished,Goods,account,represents,the,Cost,of,Goods,Manufactured,for,the,period.,True,,,,F
alse



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Brewer,Garrison,-Noreen

,
,


16. The,most,common,accounting,treatment,of,underapplied,manufacturing,overhead,
is,to,transfer,it,to,the,Manufacturing,Overhead,control,account.,True,,,,False
,
,

Multiple,Choice,Questions
,


17. Which,of,the,following,companies,would,be,most,likely,to,use,a,job-
order,costing,system,rather,than,a,process,costing,system?,
A. fast,food,restaurant
B. shipbuilding
C. crude,oil,refining
D. candy,making
,


18.,Computing,unit,product,costs,involves,averaging,in:




, ,,
A. A
B. B
C. C
D. D
,
19.,For,which,situation(s),below,would,an,organization,be,more,likely,to,use,a,job-
order,costing,system,of,accumulating,product,costs,rather,than,a,process,costing,system?,
A. a,steel,factory,that,processes,iron,ore,into,steel,bars
B. a,factory,that,processes,sugar,and,other,ingredients,into,black,licorice
C. a,costume,maker,that,makes,specialty,costumes,for,figure,skaters
D. all,of,the,above
,




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Garrison,-Noreen
20.,In,job-
order,costing,,all,of,the,following,statements,are,correct,with,respect,to,labor,time,and,cost,ex
cept:,
A. time,tickets,are,kept,by,employees,showing,the,amount,of,work,on,specific,jobs.
B. the,job,cost,sheet,for,a,job,will,contain,all,direct,labor,charges,to,that,particular,job.
C. labor,cost,that,can,be,traced,to,a,job,only,with,a,great,deal,of,effort,is,treated,as,part,of,man
ufacturing,overhead.
D. a,machine,operator,performing,routine,annual,maintenance,work,on,a,piece,of,equipment,
would,charge,the,maintenance,time,to,a,specific,job.
,


21.,Which,of,the,following,documents,is,used,to,specify,the,type,and,quantity,of,materials,dr
awn,from,the,storeroom,,and,identifies,the,job,to,which,the,costs,of,the,materials,are,to,be,c
harged?,A.,Job,Cost,Sheet
B. Bill,of,Materials
C. Material,Requisition,Form
D. Purchase,Order
,


22.,Choice,of,allocation,base,should,be,made,based,on:,A.,t
he,relative,size,of,the,base.
B. the,base's,relation,to,direct,labor.
C. the,base's,activity.
D. whether,the,base,actually,drives,the,cost,being,allocated.
,
23.,In,a,job-
order,costing,system,,the,journal,entry,to,record,the,application,of,overhead,cost,to,jobs,woul
d,include:,
A. a,credit,to,the,Manufacturing,Overhead,account.
B. a,credit,to,the,Work,in,Process,inventory,account.
C. a,debit,to,Cost,of,Goods,Sold.
D. a,debit,to,the,Manufacturing,Overhead,account.
,


24.,Ivory,Company,uses,a,job-order,costing,system.,What,year-
end,journal,entry,could,Ivory,make,to,dispose,of,(close,out),$4,150,of,overapplied,manufacturi
ng,overhead,cost?



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