cost acct test bank chapter 17.docx

cost acct test bank chapter 17.docx

《cost acct test bank chapter 17.docx》由会员分享，可在线阅读，更多相关《cost acct test bank chapter 17.docx（69页珍藏版）》请在冰豆网上搜索。

costaccttestbankchapter17

CostAccounting,14e（Horngren/Datar/Rajan）

Chapter17ProcessCosting

Objective17.1

1）Costingsystemsthatareusedforthecostingoflikeorsimilarunitsofproductsinmassproductionarecalled:

A）inventory-costingsystems

B）job-costingsystems

C）process-costingsystems

D）weighted-averagecostingsystems

Answer:

C

Diff:

1

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

2）WhichofthefollowingmanufacturedproductswouldNOTuseprocesscosting?

A）747jetaircraft

B）46-inchtelevisionsets

C）Constructionofacommercialofficebuilding

D）BothAandCarecorrect.

Answer:

D

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

3）Processcostingshouldbeusedtoassigncoststoproductswhenthe:

A）unitsproducedaresimilar

B）unitsproducedaredissimilar

C）calculationofunitcostsrequirestheaveragingofunitcostsoverallunitsproduced

D）EitherAorCarecorrect.

Answer:

D

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

4）Whichoneofthefollowingstatementsistrue?

A）Inajob-costingsystem,individualjobsusedifferentquantitiesofproductionresources.

B）Inaprocess-costingsystemeachunitusesapproximatelythesameamountofresources.

C）Anaveragingprocessisusedtocalculateunitcostsinajob-costingsystem.

D）BothAandBarecorrect.

Answer:

D

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

5）Conversioncosts:

A）includeallthefactorsofproduction

B）includedirectlaborandoverhead

C）inprocesscostingareusuallyconsideredtobeaddedevenlythroughouttheproductionprocess

D）BothBandCarecorrect.

Answer:

D

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

6）Anexampleofabusinesswhichwouldhavenobeginningorendinginventorybutwhichcoulduseprocesscostingtocomputeunitcostswouldbea:

A）clothingmanufacturer

B）corporationwhosesolebusinessactivityisprocessingthecustomerdepositsofseveralbanks

C）manufacturerofcustomhouses

D）manufactureroflargeTVs

Answer:

B

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

7）Whichofthefollowingstatement（s）concerningconversioncostsiscorrect?

A）Estimatingthedegreeofcompletionofdirectmaterialsinapartiallycompletedunitisusuallyeasiertocalculatethanestimatingthedegreeofcompletionforconversioncosts.

B）Thecalculationofequivalentunitsisrelativelyeasyforthetextileindustry.

C）Estimatesareusuallynotconsideredacceptable.

D）BothBandCarecorrect.

Answer:

A

Diff:

2

Terms:

process-costingsystem,equivalentunits

Objective:

1

AACSB:

Reflectivethinking

8）Examplesofindustriesthatwoulduseprocesscostingincludethesoft-drinkbottlingandoilindustry.

Answer:

TRUE

Diff:

1

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

9）Theprincipaldifferencebetweenprocesscostingandjobcostingisthatinjobcostinganaveragingprocessisusedtocomputetheunitcostsofproductsorservices.

Answer:

FALSE

Explanation:

Theaveragingprocessisusedtocalculateunitcostsinprocesscosting.

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

10）Process-costingsystemsseparatecostsintocostcategoriesaccordingtothetimingofwhencostsareintroducedintotheprocess.

Answer:

TRUE

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

11）Estimatingthedegreeofcompletionforthecalculationofequivalentunitsisusuallyeasierforconversioncoststhanitisfordirectmaterials.

Answer:

FALSE

Explanation:

Estimatingthedegreeofcompletioniseasierforthecalculationofdirectmaterialssincedirectmaterialscanbemeasuredmoreeasilythanconversioncosts.

Diff:

2

Terms:

equivalentunits

Objective:

1

AACSB:

Reflectivethinking

12）Job-ordercostingwouldbemostlikelyusedbyafirmthatproduceshomogeneousproducts.

Answer:

FALSE

Explanation:

Processcostingwouldbemostlikelyusedbyafirmthatproduceshomogeneousproducts.

Diff:

1

Terms:

processcosting

Objective:

1

AACSB:

Reflectivethinking

13）Whenidenticalorsimilarunitsofproductsorservicesaremassproduced,job-costingisusedtocalculateanaverageproductioncostforallunitsproduced.

Answer:

FALSE

Explanation:

Whenidenticalorsimilarunitsofproductsorservicesaremassproduced,processcostingisusedtocalculateanaverageproductioncostforallunitsproduced.

Diff:

1

Terms:

processcosting

Objective:

1

AACSB:

Reflectivethinking

14）Therearebasicallytwodistinctmethodsofcalculatingproductcosts.

Required:

Compareandcontrastthetwomethods.

Answer:

Injobcostingthejoborproductisadistinctlyidentifiableproductorservice.Eachjobrequires（orcanrequire）vastlydifferentamountsofinput.Jobcostingisusuallyassociatedwithproductsthatareuniqueorheterogeneous.Thus,eachjobrequiresdifferentamountsofinput,andtheycanrequirevastlydifferentamountofcoststofinish.Job-costedproductstendtobehighcostperunit.Thusthecostsofeach（unique）jobareimportantforplanning,pricing,andprofitability.

Inprocesscosting,thejobsorproductsaresimilar（orhomogeneous）.Eachjobusuallyrequiresthesameinputs,andresultsinapproximatelythesamecostsperunit.Thecostofaproductorserviceisobtainedbyassigningtotalcoststomanyidenticalorsimilarunits.Weassumeeachunitreceivesthesameamountofdirectmaterialcosts,directmanufacturinglaborcosts,andindirectmanufacturingcosts.Unitcostsarethencomputedbydividingtotalcostsbythenumberofunits.

Theprincipaldifferencebetweenprocesscostingandjobcostingistheextentofaveragingusedtocomputeunitcosts.Asnotedaboveinjobcosting,individualjobsusedifferentquantitiesofproductionresources;whereasinprocesscosting,weassumethateachjobusesapproximatelythesameamountofresources.

Diff:

2

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

15）Whydoweneedtoaccumulateandcalculateunitcostsinprocesscosting（andalsojobcosting）?

Answer:

Weneedtoaccumulateunitcoststo:

1.Budget（planning）

2.Price

3.Accountforthecosts

1.BudgetingTooperateasuccessfulbusiness,weshouldpreparebudgets,reviewtheresults,andmakedecisionsastohowwellourbusinessisdoing.Ourbusinesshasformulatedplansforthefuture.Theresourcesweneedforthefuture（materials,conversioncosts,facilities,etc.）willdependonourestimateoftheresourcesweneedtoaccomplishthesegoals.Animportantpartoftheseestimatesistheunitcostsoftheproductsweplantoproduce.Theseunitcostswilltellushowmanydollarswemustacquiretoaccomplishourplans.

2.PriceInordertobeaprofitablebusiness,wemustsellourproductatapriceinexcessofwhatitcostsustoproducetheproduct.Essentialforthepricingdecisionisthecostperunit.Wewillalsolearnwhetherwecansellaproductataprofit.

3.AccountingDuringthecourseoftheaccountingperiod,wewillbeaccumulatingcosts.Attheendoftheaccountingperiod,wemustallocatethispoolofcostsbetweentheunitsthatweretransferredoutandthegoodsinendinginventory.Unitcostsareessentialforthispurpose.

Diff:

1

Terms:

process-costingsystem

Objective:

1

AACSB:

Reflectivethinking

16）ThepresidentoftheGulfCoastRefiningCorporationwantstoknowwhyhisgolfingpartner,whoisthechieffinancialofficerofalargeconstructioncompany,calculateshiscostsbythejob,buthisowncorporationcalculatescostsbylargeunitsratherthanbyindividualbarrelofoil.

Answer:

Oilrefineriesuseprocesscostingtocalculatetheircostsperbarrelofoil.Eachbarrelofoilisessentiallythesame.Thus,costsareaccumulatedforalltheoilprocessedduringagiventimeperiod,andthetotalcostsaredividedbythebarrelsofoilproduced.Anaveragecostiscalculated.Sincethecoststoactuallyproducetheoilareessentiallythesame,accuracyisnotlostbythisprocess.

Theconstructioncompanycalculatescostsbyeachjob,sinceeachjobcanrequiresubstantiallydifferentamountsofthevariousinputs.Thus,thecostofeachjobcouldberadicallydifferentfromtheotherjobs.

Diff:

1

Terms:

process-costingsystem

Objective:

1

AACSB:

Multiculturalismanddiversity

17）Describethedifferencesbetweenprocesscostingandjobcosting.Discusssometypicalproductswhichwouldbemorelikelytouseprocesscostingascomparedtosomewhichwouldbemorelikelytousejobcosting.

Answer:

Whenproductsareunique,jobcostingisamoreappropriatemethodtouseincollectingcostsandmakingdecisionsregardingpricelevels,.Inajob-costingsystem,individualjobsrequiredifferinglevelsofresources.Eachjobistreatedseparatelyandtheresourcesusedtocompletethejobhavetobecalculatedseparately.Constructionjobsaremostlikelytousejobcostingbecauseoftheiruniquespecifications.

Inaprocess-costingsystem,theunitsproducedasoutputareverysimilartooneanother.Asaresult,themeansbywhichtherawmaterialisconvertedtoafinishedproductiscommonamongalloftheproducts.Thisallowstheconversioncoststobesummedupanddividedbythetotalnumberofunitsforanaccurateconversioncostonaunitbyunitbasis.Sometypicaltypesofproductswhicharelikelytouseprocesscostingareoilrefineries,icecream,variousfoodpreparationindustries,etc.Thisisbecausetherawmaterialisprocessedinasimilarmannerforalloftheunitsproduced.

D