Question

QUESTION 1

Process costing systems are most appropriate with products produced in small quantities.

True

False

  

QUESTION 2

All of the following are common cost variances except....?

	A.	Material price variance
	B.	Labor price variance
	C.	Material quantity variance
	D.	Labor efficiency variance

QUESTION 3

All of the following are common cost accumulation systems except...?

	A.	Normal
	B.	Actual
	C.	Standard
	D.	Typical

QUESTION 4

A material requisition form is a supporting document in a Job order costing system. All listed below are good reasons for using a material requisition form except...?

	A.	Tracks who is responsible for materials
	B.	Authorizes release of materials from inventory to production area
	C.	Verifies flow of materials from storage area to department to job
	D.	Documents receipt of materials into inventory

  

QUESTION 5

Shrinkage represents a loss of product and/or material for one of a number of reasons.

True

False

Answer 1

QUESTION 1 - False

Process costing systems are most appropriate with products produced in Large standard products.

QUESTION 2 - B Labor Price Variance .

Usually the Rate of labor is predetermined and normally that is paid so that Labor price variance is not common.

QUESTION 3 - D Typical

All others are used for cost accumulation .

QUESTION 4 - B Authorizes release of materials from inventory to production area

QUESTION 5 - True.

Shrinkage is the normal loss of material while storing.

It is prepared by the production department to get materials for production.