Which of the following statements is (are) true regarding product costing?
(A) A job is a cost object that can be easily and conveniently distinguished from other cost objects.
(B) Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.
Only A is true
Only B is true.
Both A and B are true.
Neither A nor B is true.
Which of the following statements is (are) false regarding first-stage and second-stage cost allocation methods?
(A) The basic difference between a first-stage cost allocation and a second-stage cost allocation is that cost pools are not used in first-stage cost allocations.
(B) Predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations.
Only A is false
Only B is false.
Neither A nor B is false.
Both A and B are false.
For which of the following businesses would the job order cost system be appropriate?
auto repair shop
crude oil refinery
drug manufacturer
beer distillery
The predetermined overhead rate for manufacturing overhead for 2008 is $4.00 per direct labor hour. Employees are expected to earn $5.00 per hour and the company is planning on paying its employees $100,000 during the year. However, only 75% of the employees are classified as "direct labor." What was the estimated manufacturing overhead for 2008?
$60,000
$75,000
$80,000
$93,750
Which of the following statements is (are) true?
(A). Activity-based costs per unit are greater than volume-based costs per unit.
(B). Volume-based costing has typically resulted in lower gross margins for high volume products and higher gross margins for low volume products.
Only A is true.
Only B is true.
Both A and B are true.
Neither A nor B are true.