In a Job Costing system, which of the following contain(s) the detailed cost data that support the Work in Process control account? A. The Manufacturing Overhead account. B. Job cost sheets. C. The Finished Goods inventory account. D. WIP Account Sheet
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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In a
Job Costing system, which of the following contain(s) the detailed cost data that support the Work in Process control account?A. The Manufacturing
Overhead account.B. Job cost sheets.
C. The Finished Goods inventory account.
D. WIP Account Sheet
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What is characteristic of step costs?
A. Remain the same within the relevant range.
B. Have an increased fixed component at specified intervals.
C. Increase in direct proportion to increases in output.
D. Decrease in direct proportion to increases in output.
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The cost of goods that were finished and transferred out of work-in-process during the current period is:
A. Cost of goods sold.
B. Cost of goods available for use.
C. Cost of goods purchased.
D. Cost of goods manufactured.
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Which of the following is defined as the difference between total sales in dollars and total variable expenses?
A. Margin of safety.
B. Operating income.
C. The gross margin.
D. The contribution margin.
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Any product, service, or organizational unit to which costs are assigned for some management purpose is a(n):
A. Cost object.
B. Direct cost.
C. Indirect cost.
D. Cost driver.
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The term relevant range as used in cost accounting means the range over which:
A. Costs may fluctuate.
B. Production volume may vary.
C. Cost relationships behave as expected.
D. Relevant costs are incurred.
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