Cost Management A Strategic Emphasis 6Th Edition Blocher Test Bank Full Chapter PDF
Cost Management A Strategic Emphasis 6Th Edition Blocher Test Bank Full Chapter PDF
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Chapter 04
Job Costing
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1. Product costing provides useful cost information for all the following except:
2. The key distinction between job costing and process costing is:
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4. Which of the following can produce unit product costs that fluctuate significantly?
5. A normal costing system uses actual costs for direct materials and direct labor, and:
C. Should provide useful cost information for strategic and operational decision needs.
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7. If a firm is following the cost leadership strategy, and overhead accounts are complex, then
the:
C. Traditional volume-based job costing will not usually provide the needed cost accuracy.
8. The three major differences between process and job order costing systems are those
relating to:
C. Cost object, product or service variety, and timing of unit cost calculation.
9. The two main advantages of using predetermined factory overhead rates are to provide more
accurate unit cost information and to:
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10. The ideal criterion for choosing an allocation base for overhead is:
A. Ease of calculation.
B. A cause-and-effect relationship.
C. Ease of use.
D. Its preciseness.
E. Its applicability.
11. Volume-based rates are appropriate in situations where the incurrence of factory overhead:
12. Departmental rates are appropriate when all the following exist except:
D. All departments have similar cost drivers and cost usage characteristics.
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13. Volume-based cost accounting systems often do a poor job of product costing because they:
C. Often do not reflect changes in major cost categories caused by plant automation.
D. Too often use an allocation base that does not have a cause-effect relationship to
resource usage.
14. Under job costing, factory overhead costs are assigned to products or services using labor or
machine hours which are:
15. Operation costing is a hybrid costing system for products and services that uses:
A. Job costing to assign direct material costs and standard costing for conversion cost.
B. Process costing to assign conversion costs and normal costing for materials cost.
C. Job costing for direct materials costs and process costing for conversion cost.
D. Normal costing for conversion cost and process costing for materials cost.
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16. Cost system design/selection should consider all but which one of the following?
C. Customer needs.
17. Which one of the following documents records and summarizes the costs of direct materials,
direct labor, and factory overhead for a particular job?
A. Purchase order.
D. Bill of materials.
18. Which one of the following is used by the production department supervisor to request the
materials for production?
A. Purchase order.
B. Material requisition.
C. Bill of materials.
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19. Which one of the following is the amount of factory overhead applied that exceeds the actual
factory overhead cost?
C. Overapplied overhead.
E. Underapplied overhead.
20. Which one of the following is the amount that actual factory overhead exceeds the factory
overhead applied?
C. Overapplied overhead.
E. Underapplied overhead.
21. The total cost of direct materials, direct labor, and factory overhead transferred from the
Work-in-Process Inventory account to the Finished Goods Inventory account during an
accounting period is:
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22. A hybrid costing system that uses job costing to assign direct materials costs, and process
costing to assign conversion costs to products or services is:
A. Process costing.
B. Operation costing.
C. Actual costing.
D. Product costing.
E. Job costing.
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25. When completed units are transferred to the warehouse:
27. Which of the following industries is more suitable for using a job costing system?
A. Chemical plants.
C. Medical clinics.
D. Cement manufacturing.
E. Food processing.
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28. The system where the cost of a product or service is obtained by assigning costs to masses
of similar units in each department and then computing unit cost on an average basis is
called
29. All of the following items are debited to the Work-in-Process Inventory account except:
B. Scrap.
E. Controllable spoilage.
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31. Abnormal spoilage:
D. Is unacceptable spoilage that should not occur under efficient operating conditions.
32. For job costing in service industries, overhead costs are usually applied to jobs based on:
A. Factory overhead.
B. Indirect labor.
C. Indirect materials.
E. Direct materials.
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Badour Inc. is a job-order manufacturer. The company uses a predetermined overhead rate
based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours were 114,000 and estimated factory overhead was $695,400. The
following information was for September. Job X was completed during September, while Job
Y was started but not finished.
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33. The total cost of Job X is:
A. $152,400.
B. $128,200.
C. $151,900.
D. $129,600.
E. $140,800.
A. $59,300.
B. $57,950.
C. $57,848.
D. $56,120.
E. $57,710.
A. $2,750 underapplied.
B. $2,750 overapplied.
C. $920 overapplied.
D. $920 underapplied.
E. $1,450 underapplied.
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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
forwarded, distributed, or posted on a website, in whole or part.
Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate
based on direct labor hours to apply overhead to individual jobs. For the current year,
estimated direct labor hours are 133,000 and estimated factory overhead is $784,700. The
following information is for September. Job X was completed during September, while Job Y
was started but not finished.
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authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated,
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written to order by willing officials, can only be representative of a
small fraction of popular opinion—inciting the population against
the Duma, and begging the Emperor to dissolve it. When one reads
these telegrams one is convinced that they cannot represent a
widely-spread opinion, for they run somewhat after this fashion:
“Great, unlimited autocrat, listen to us true Russians, dissolve the
herd of rebels, who by means of Jewish money have usurped the
position of representatives of the people. Pay no attention to their
seditious cries, but listen rather to us, whose only wish is that thy
Heaven-given, anointed, unlimited, multitudinous, incarnadined
autocratitude should remain unlimited. Give us less bread and more
taxes. We are perfectly contented. We have everything our heart
desires, so long as thou remainest unlimited.”
If the British Cabinet were to circulate among the Army an
invitation to destroy the House of Commons, full of insulting
strictures on the members of the House, we should not consider this
action to be constitutional. But this is what the Russian Government
has been doing during the last month. The situation of a Parliament
which has to deal with such a Ministry is abnormal. What guarantee
is there that the Ministry will not dissolve it at any minute and
change the electoral law? Not, certainly, the fact that this would be
illegal and unconstitutional. Therefore, on these grounds, and in
these circumstances, it seems to me that the action of the members
of the Duma, in insisting on having their “say out” on the land
question before anything else happens, is not so needless and not
such a waste of time as it at first appears to be. The speeches of the
members are reported in full, published in the newspapers, and read
all over the country, and therefore if the Duma is dissolved suddenly
the country will be already acquainted with the opinions and
intentions of the Duma on the land question. This is why the fact that
the Duma has existed and spoken out during a month is in itself one
of paramount importance and likely to be big with far-reaching
results. When the Duma met the Russian people echoed the French
poet’s cry that “une grande espérance a traversé le monde,” but they
were doubtful as to its efficacy. Now that it has met during a whole
month, and that people within its walls have really been able to speak
their minds on burning topics without being arrested, and have in no
uncertain tones expressed their opinion of the present Government,
the effect has been enormous.
Last night I was driven home by a cabman who favoured me with
his political views. I attach far more importance to the views of any
cabman in St. Petersburg than to those of any of the Ministers,
because they are more intimately acquainted with popular opinion.
The cabman first expressed his appreciation of the fact that some
people in Russia had too much land and others too little. Count
Ignatieff’s estate, he said, was a hundred versts long, and he had
eight estates. The Duma, he continued, was demanding land and
liberty. I objected that the Duma might be dissolved. “They won’t
dare,” he replied. “But if they do dare?” I said. “Then we shall kill
them,” he answered. “Kill whom?” “Why, all the rich.” “But will the
soldiers be on your side?” I asked. “The soldiers are peasants, too,”
he said. “But before they shot at the people,” I said. “Before they did
not understand what it was all about. Now they know,” he said. “Go
into any tractir (public-house) you like,” he continued, “and you will
hear how the people are screaming.”
Some weeks ago a change in the spirit of the Army, owing to the
existence of the Duma, was not improbable. It appears to be now on
the way towards realisation. Some of the Guards regiments are said,
on the other hand, to be highly incensed against the Duma. One of
the peasant members told me that his brother, who is in a regiment
here, informed him that the strictest surveillance was being exercised
on the movements and on the correspondence of the soldiers. He
said some of the regiments in St. Petersburg would be for the Duma,
but only the minority. I think it must be difficult for people who have
never been here, either in the past or in the present, to realise that
although the old régime has not yet been destroyed there is an
enormous difference in the general state of things owing to the fact
that up to last year the expression of public opinion was impossible,
and that now it is not only re-echoed under the protection of the
Duma all over Russia but finds a vehicle in innumerable newspapers
and pamphlets, not one of which is without what the Germans call a
“Tendenz.” Every bit of fiction, verse, satire, history, anecdote that is
now published is definitely and purposely revolutionary. The non-
political part of every newspaper is therefore practically devoted to
politics. Every day, and twice a day, the same string is sounded.
Everything in Russia now is tinged with one colour, and that colour
is bright red.
June 14th.
To-day in the Duma there was a barefooted man in rags, who said
he had arrived in St. Petersburg chiefly owing to the kindness of the
railway guards. His house had been burnt, owing to some squabble
with the police authorities. Another correspondent and I had some
talk with him. He thought we were deputies. He said: “Stand up for
our rights and I will go back and tell them you are doing so.”
July 6th.
July 7th.
This afternoon I went to have tea with two of the peasant deputies.
They had asked me because it was the Name-day of one of them.