ACC 350 WK 5 Midterm Exam - All Possible QuestionsTo Purchase Click Link Below:http://strtutorials.com/ACC-350-WK-5-Midterm-Exam-All-Possible-Questions-ACC3504.htmACC 350 WK 5 Midterm Exam - All Possible Questions1)

Direct costs are allocated to the cost object using a cost-allocation method.

2)

Raw materials that can be traced to a cost object are an example of an indirect cost.

3)

Fixed and variable costs may be allocated to a cost object.

4)

Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job.

5)

Cost objects may be jobs, products, or customers.

6)

The cost driver of an indirect cost is often used as the cost-allocation base.

7)

A company may use job costing to assign costs to different product lines and then use process costing to calculate unit costs within each product line.

8)

In each period, job costing divides the total cost of producing an indentical or similar product by the total number of units produced to obtain a per-unit cost.

9)

Job costing is commonly used to estimate costs in beverage production.

10)

In a job-costing system the cost object is an individual unit, batch, or lot of a distinct product or service.

11)

Actual costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base.

12)

Process costing is used to assign manufacturing costs to unique batches of a product.

13)

Job costing and process costing systems share the same objective of estimating product costs.

14)

While costs are measured for individual jobs in a job cost system, they are measured for individual process stages in a process costing system.

15)

If indirect-cost rates were based on actual short-term usage, periods of lower demand would result in higher costs per unit.

16)

In job costing, only direct costs are used to determine the cost of a job.

17)

Indirect manufacturing costs should be allocated equally to each job.

18)

Each cost pool may have multiple cost allocation bases.

19)

Gross margin percentage can be used to compare the profitability of different jobs.

20)

A job-cost record is a source document, but individual items of the job-cost record may also have source documents.

21)

A materials-requisition record is an example of a source document.

22)

The reliability of the job-cost records depends on the reliability of the inputs.

23)

To smooth fluctuating levels of output, separate indirect-cost rates should be calculated for each month.

24)

Grounds-maintenance costs incurred during the summer months will distort indirect-cost rates that are computed monthly.

25)

One reason for using longer time periods to calculate indirect-cost rates is seasonal cost fluctuations.