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chapter 19
Job Costing
and Modern Cost Management Systems
goals discussion
goals
achievement
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in the blanks
multiple
choice
problems
check list and key terms
Select the appropriate response.
A job costing system employs a job cost sheet and does away with the need for a Work in Process account.
Which of the following documents would provide input regarding the amount of direct materials for a specific job?
purchase order or materials requisition
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.
The amount of manufacturing overhead to divide by the estimated application base (in determining the overhead application rate) is the:
estimated amount or actual amount
Modern events that have facilitated job costing methods include the utilization of database technologies and:
automated tracking of labor and materials or inexpensive global labor
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.
The appropriate journal entry to record applied overhead involves a debit to:
Work in Process or Factory Overhead
The balance in Work in Process must always be closed to finished goods at the end of each accounting period:
Setting prices for global exchanges between affiliated companies is referred to as:
transfer pricing or cross border financing
Indirect labor costs incurred would be debited to the:
Factory Overhead account or Work in Process account
What is the impact on the Factory Overhead account of recording actual overhead costs?
The presence of a credit balance in the Factory Overhead account indicates that overhead has been overapplied.
Job costing systems are not applicable to service organizations.
For a service organization, indirect costs are not allocated to specific jobs, but are instead charged directly to Income Summary.
This Japanese term refers to a blitz-like study of business processes, relying on input from front line employees for suggestions:
The concept of lean manufacturing is focused solely on cost cutting:
A trademarked approach for seeking near-zero defects in all productive and business processes is known as: