Accounting 202 - Chapter 3.1 Review Test Quiz

11 Questions | Total Attempts: 72

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Accounting 202 - Chapter 3. 1 Review Test Quiz There are two different types of cost systems. These systems help a manufacturing company to know which products are profitable to make and those that are not. These costing systems are beneficial as they increase the profitability of a business. Take up the quiz below to see what more you can recall on the topic.


Questions and Answers
  • 1. 
    What are the two basic types of costing systems?
    • A. 

      Job costing and process costing

    • B. 

      Periodic costing and perpetual costing

    • C. 

      Product costing and materials inventory costing

    • D. 

      Periodic costing and process costing

  • 2. 
    What type of product costing system would a manufacturer of plywood use?
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Either job or process

    • D. 

      Both job and process

  • 3. 
    What type of product costing system would a manufacturer of luxury yachts use?
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Either job or process

    • D. 

      Both job and process

  • 4. 
    Which of these documents are used to accumulate the costs of a job?
    • A. 

      Labor time record

    • B. 

      Materials inventory requisition form

    • C. 

      Job cost record

    • D. 

      Bill of materials

  • 5. 
    Which of these documents substantiates the balance of the raw materials inventory account shown on the company’s balance sheet?
    • A. 

      Raw materials records

    • B. 

      Bill of materials

    • C. 

      Materials requisition

    • D. 

      Labor time record

  • 6. 
    Which of these documents informs the storeroom to send specific materials to the factory floor?
    • A. 

      Receiving report

    • B. 

      Bill of materials

    • C. 

      Materials requisition

    • D. 

      Purchase order

  • 7. 
    When direct materials are requisitioned, they flow directly into:
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Manufacturing overhead

    • D. 

      Work in process inventory.

  • 8. 
    A source document for tracking employee hours is called a
    • A. 

      Job cost record

    • B. 

      Process costing

    • C. 

      Labor time record

    • D. 

      Job costing

  • 9. 
    A document that accumulates job costs is called a
    • A. 

      Job cost record

    • B. 

      Bill of materials

    • C. 

      Labor time record

    • D. 

      Production schedule

  • 10. 
    Which comes first in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

  • 11. 
    Which comes second in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

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