1. A cost driver is a factor, such as machine-hours, beds occupied, computer time, or flight-hours, that causes direct costs. Answer: F
Difficulty: 2
... [Show More] Medium
Learning Objective: 02-01 Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
2. Job-order costing systems often use allocation bases that do not reflect how jobs actually use overhead resources. Answer: T
Difficulty: 2 Medium
Learning Objective: 02-01 Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
3. An employee time ticket is an hour-by-hour summary of the employee’s activities throughout the day. Answer: T
Difficulty: 1 Easy
Learning Objective: 02-Other Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
4. The formula for computing the predetermined overhead rate is:
Predetermined overhead rate = Estimated total amount of the allocation base ÷ Estimated total manufacturing overhead cost
Answer: F Difficulty: 1 Easy
Learning Objective: 02-01 Topic Area:
Bloom’s: Remember AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
5. Generally speaking, when going through the process of computing a predetermined overhead rate, the estimated total manufacturing overhead cost is determined before estimating the amount of the allocation base.
Answer: F Difficulty: 1 Easy
Learning Objective: 02-01 Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
6. If a job is not completed at year end, then no manufacturing overhead cost would be applied to that job when a predetermined overhead rate is used.
Answer: F Difficulty: 2 Medium
Learning Objective: 02-02 Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking AICPA: FN Measurement Feedback:
[QUESTION]
7. Actual overhead costs are not assigned to jobs in a job costing system. Answer: T
Difficulty: 1 Easy
Learning Objective: 02-02 Topic Area:
Bloom’s: Understand AACSB: Reflective Thinking AICPA: BB Critical Thinking [Show Less]