It uses computer to produce outputs for
It uses well-specified economic events as
inputs
- Financial Accounting information
system
Accounting report that provides feedback by
comparing planned data with actual data
- Performance report
Ability to assign cost directly to a cost object
in economically feasible way
- Traceability
It follows rules and conventions set by the
SEC and Financial Reporting Standard
Council
- Financial accounting information
system
It allows firm to reduce inventory and
increase productivity
- Computer-integrated manufacturing
A bank employee who checks the credibility
of your company is an example of
- External user
Branch of accounting that focuses on
standards rather than cost benefits
- Financial accounting
The 2 foundation principles of sustainable
development and total quality management
- Continuous improvement and
elimination of waste
It is currently being used by the company to
bring current or future benefit
- Asset
external stakeholders
- Financial accounting information
system
It is the value of cash or cash equivalent
that was sacrificed for goods and services
but does not produce any revenue
- Loss
The object at which costs are accumulated
- Cost object
The branch of accounting that deals with
recording, classifying, summarizing
transactions for internal users
- Management Accounting
All are not differences of service and
tangible products except
- Perishability
Cost grouped based on their reactions to
activity changes include all except
- Direct Cost
These are inventories which are currently at
some phase of the manufacturing process.
They are in unfinished state and therefore
cannot be sold yet
- Work in process inventory
Type of company which conversion cost is
mainly composed of labor
- ​Service company
a method that continuously estimates your
inventory based on your electronic records,
not a physical inventory
- Perpetual inventory
Creation of departments in a firm to
conveniently allocate overhead costs
- Allocation
the cost of the initially ranked service
department affects the cost of the
secondarily ranked service department
before allocation of costs to the production
department
- Sequential method
The recommended number of inventory
purchased every time an order is placed
- EOQ
Responsible for the computation of payroll
- Payroll department
inventory valuation that calculates per unit
cost every time new inventory is accepted
- Moving average
Payroll costs incurred for a variety of jobs
that are too remote or too insignificant to be
charged directly to production
- Indirect labor
Production is not maximized since workers
are not subjected to certain time pressures
- Hourly rate plan
All of the following are overhead costs
based on elements except
- Manufacturing
A predetermined overhead rate is calculated
using which of the following formulas?
- Budgeted annual overhead/actual
annual driver level
non-unit-based activity drivers
- Machine hours
The overhead rates of the traditional
functional-based product costing use
- Unity-based activity drivers
A job-order costing process would be most
applicable for
- Airplane manufacturing
Which cost accounting processes would be
most appropriate for firms that produce
unique products?
- Job-order costing
Which of the following products would NOT
use job-order costing?
- chemicals
A job-order costing system that uses actual
costs for direct materials and direct labor
and estimated costs for overhead is called
- Normal job-order costing
Manufacturers producing similar or
homogenous products would employ
- Process costing
The process where a single product is
produced on a continuous basis is called:
- Process production
Manufacturing overhead consists of all
- manufacturing costs other than
direct materials and direct labor
Costs that include selling and administrative
expenses are known as non-production cost
or manufacturing cost
- False
Adding direct materials and direct labor is
known as manufacturing cost
- False
In computing for withholding tax of an
employee, mandatory contributions are
deducted from basic pay to arrive at taxable
income
- False
Mandatory contributions are being deducted
from basic pay

Companies categorize cost by operating - False

product costs for strategic design and
product mix decision
When you need to distribute the overhead
- False costs of all service departments to each
When you add direct material to conversion other, you need to use sequential method
cost, the answer will be production cost - False
- True Overhead costs are those other directly
traceable cost in production aside from
Marketing and Administrative expenses are
non-inventoriable costs direct materials and direct labor
- False
- True
At EOQ level, carrying cost will always be
Manufacture cost include direct materials,
equal to ordering cost
direct labor and factory overhead
- True
- False
EOQ is the minimum order quantity to be
Fixed cost are called fixed cost because it
ordered to balance the costs of carrying an
does not change its per unit cost regardless
inventory and placing an order
of changes in volume
- False
- False
Overhead assignments should reflect the
Variable cost is known variable because the
amount of overhead demanded by each
total cost of materials for each level of
product
production varies, but the unit cost stays the
- True
same
Unit-level drivers are factors that measure
- True
the demands placed on unit-level activities
If a cost exceeds the relevant range, its
by products
behavior will change
- true
- True
If overhead is a significant proportion of the
unit manufacturing costs, the distortion
caused by using multi-level drivers can be
serious
- False
Cost assignment is the assignment of costs
to products or services once the costs have
been accumulated and measured
- True
The job-order cost sheet accumulates the
cost of all the jobs produced
- False
Companies operating in job-order industries
produce a wide variety of products or jobs
that are quite similar from each other
- False