A job costing system employs a job cost sheet and does away with the need for a Work in Process account.

true   Incorrect or    falseCorrect

 

Which of the following documents would provide input regarding the amount of direct materials for a specific job?

purchase order   Incorrect or    materials requisitionCorrect

 

The estimated overhead cost for a job or product is determined by using an overhead application rate. The application rate relates overhead to a specific application base.

true   Correct or    falseIncorrect

 

The amount of manufacturing overhead to divide by the estimated application base (in determining the overhead application rate) is the:

estimated amount    Correct or    actual amountIncorrect

 

Modern events that have facilitated job costing methods include the utilization of database technologies and:

automated tracking of labor and materials   Correct or    inexpensive global laborIncorrect

 

Automation of factory production results in both an increase in the expected amount of total overhead and a reduction in the relevance of direct labor as an appropriate cost driver.

true   Correct or    falseIncorrect

 

The appropriate journal entry to record applied overhead involves a debit to:

Work in Process   Correct or    Factory OverheadIncorrect

 

The balance in Work in Process must always be closed to finished goods at the end of each accounting period:

no   Correct or    yesIncorrect

 

Setting prices for global exchanges between affiliated companies is referred to as:

transfer pricing   Correct or    cross border financingIncorrect

 

Indirect labor costs incurred would be debited to the:

Factory Overhead account   Correct or    Work in Process accountIncorrect

 

What is the impact on the Factory Overhead account of recording actual overhead costs?

debit   Correct or    creditIncorrect

 

The presence of a credit balance in the Factory Overhead account indicates that overhead has been overapplied.

true   Correct or   falseIncorrect

 

Job costing systems are not applicable to service organizations.

true   Incorrect or   falseCorrect

 

For a service organization, indirect costs are not allocated to specific jobs, but are instead charged directly to Income Summary.

true   Incorrect or    falseCorrect

 

This Japanese term refers to a blitz-like study of business processes, relying on input from front line employees for suggestions:

Kanban    Incorrect or    KaizenCorrect

 

The concept of lean manufacturing is focused solely on cost cutting:

true    Incorrect or   falseCorrect

 

A trademarked approach for seeking near-zero defects in all productive and business processes is known as:

TQM    Incorrect or    Six SigmaCorrect