CH02 SB1 questions marked wrong PDF

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CH02 SB1 ...

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The United States requires absorption costing for ______ financial reports. both internal and external neither internal nor external internal Reason: There are no costing requirements for internal reports. external

Correct Answer external A bill of materials contains the ______. quantity of each direct material needed to complete a unit of product type of materials to be drawn from the storeroom Reason: The type of materials to be drawn from the storeroom is on the materials requisition form. type of each direct material needed to complete a unit of product quantity of materials to be drawn from the storeroom Reason: The quantity of materials to be drawn from the storeroom is on the materials requisition form.

Correct Answer quantity of each direct material needed to complete a unit of product type of each direct material needed to complete a unit of product Manufacturing overhead consists of ______. a single kind of direct cost

a single kind of indirect cost many different kinds of indirect costs many different kinds of direct costs

Correct Answer many different kinds of indirect costs Average manufacturing overhead cost per unit usually varies from one period to the next because ______. the makeup of manufacturing overhead changes from period to period Reason: The makeup of manufacturing overhead is stable and does not change frequently. fixed manufacturing overhead remains constant in total even when production changes variable overhead costs per unit vary when production changes Reason: Variable costs remain constant at the unit level.

Correct Answer fixed manufacturing overhead remains constant in total even when production changes Overhead application is the process of ______. assigning manufacturing overhead cost to jobs calculating a predetermined overhead rate Reason: The process of calculating a predetermined overhead rate is the first stage of overhead application. adjusting accounts for the difference between applied and actual overhead Reason:

The process of adjusting accounts to account for actual overhead is related to the disposition of underapplied or overapplied overhead. calculating the total cost of a job Reason: Overhead application is related to the assignment of overhead cost, which is only part of the overall job cost.

Correct Answer assigning manufacturing overhead cost to jobs The total cost of a job includes ______. direct labor cost applied manufacturing overhead actual manufacturing overhead Reason: Applied manufacturing overhead, rather than actual manufacturing overhead, is included in the total cost of a job. direct materials cost nonmanufacturing cost Reason: Nonmanufacturing costs are not manufacturing costs and should not be included in the cost of a job.

Correct Answer direct labor cost applied manufacturing overhead direct materials cost...