Description
Test Bank For Managerial Accounting 7th Edition By John Wild Ken Shaw
Managerial Accounting, 7e (Wild)
Chapter 2 Job Order Costing and Analysis
1) Cost accounting systems accumulate production costs and then assign them to products and services.
Answer: TRUE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
2) A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Work in Process Inventory.
Answer: FALSE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
3) Cost accounting information is helpful to management for pricing decisions but has no effect on controlling costs.
Answer: FALSE
Difficulty: 2 Medium
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Understand
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
4) There are two basic types of cost accounting systems: job order costing and periodic costing.
Answer: FALSE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
5) There are two basic types of cost accounting systems: job order costing and process costing.
Answer: TRUE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
6) A company that produces a large number of standardized units would normally use a job order costing system.
Answer: FALSE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
7) A company that produces products individually designed to meet the needs of a specific customer, would normally use a job order costing system.
Answer: TRUE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
8) Job order costing would be appropriate for companies that produce custom homes and specialized equipment.
Answer: TRUE
Difficulty: 1 Easy
Topic: Job Order Costing
Learning Objective: 02-C1 Describe important features of job order production.
Bloom’s: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Measurement
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