Cost Accounting, 14e, Global Edition (Horngren/Datar/Rajan)
Chapter 4 Job Costing

1) Job costing information is used: A) to develop strategies B) to make pricing decisions C) for external financial reporting D) All of these answers are correct.

2) Product costing information is used by managers: A) to make decisions and strategy B) for planning and control C) for cost management D) All of these answers are correct.

3) A ________ is a grouping of individual indirect cost items. A) cost allocation base B) cost assignment C) cost pool D) job-costing system

4) Each indirect-cost pool of a manufacturing firm: A) utilizes a separate cost-allocation rate B) is a subset of total indirect costs C) relates to one cost object D) All of these answers are correct.

5) Direct costs A) are anything for which a measurement of costs is desired. B) are costs related to a particular cost object that can be traced to that cost object in an economically feasible (cost-effective) way C) focus specifically on the costing needs of the CFO D) provide all information for management decision needs

6) In a costing system: A) cost tracing allocates indirect costs B) cost allocation assigns direct costs C) a cost-allocation base can be either financial or nonfinancial D) a cost object should be a product and not a department or a geographic territory

7) Assigning direct costs to a cost object is called: A) cost allocation B) cost assignment C) cost pooling D) cost tracing

8) ________ is the process of distributing indirect costs to products. A) Cost allocation B) Job cost recording C) Cost pooling D) Cost tracing

9) A ________ links an indirect cost to a cost object. A) cost-allocation base B) cost pool C) cost assignment D) cost tracing

10) Which of the