ACCT 331 Chapter 4 Exam Questions With Complete Answers

ACCT 331 Chapter 4 Exam Questions With
Complete Answers


How does a job-costing system differ from a process-costing system? - ANSWER A
job-costing system assigns costs to distinct units; a process-costing system assigns costs
to masses of similar units.




Identify the seven steps in job costing. - ANSWER Step 1

Identify the job that is the chosen cost object.

Step 2

Identify the direct costs of the job.

Step 3

Select the cost-allocation bases to use for allocating indirect costs to the job.

Step 4

Identify the indirect costs associated with each cost-allocation base.

Step 5

Compute the rate per unit of each cost-allocation base used to allocate indirect costs to
the job.

Step 6

Compute the indirect costs allocated to the job.

Step 7

Compute the total cost of the job by adding all direct and indirect costs assigned to the

, job.




7 Steps - ANSWER 1.Identify Job

2. Identify direct costs

3. Select cost-allocation base

4. Identify Indirect Costs associated with base

5. Compute rate per unit of each allocation base

6. Compute indirect costs allocated

7. Compute TC = Adding all direct and indirect costs




Step 1 - ANSWER Identify the job that is the chosen cost object.




Step 2 - ANSWER Identify the direct costs of the job. = DIRECT MATERIAL, DIRECT
LABOR




Step 3

Select the cost-allocation bases to use for allocating indirect costs to the job. - ANSWER
Select the cost-allocation bases to use for allocating indirect costs to the job.




= DIRECT LABOR HOURS, DIRECT LABOR COSTS, UNITS, ETC.




Step 4 : Identify the indirect costs associated with each cost-allocation base. - ANSWER