Coding systems. Indicate whether each of the following types of businesses would
ID: 2351206 • Letter: C
Question
Coding systems.Indicate whether each of the following types of businesses would be more likely to use a process or job costing system.
-Architect
-Attorney
-Dentist
-Heavy-equipment manufacturer
-House painter
-Landscaper
-Magazine publisher
-Management consultant
-Pet groomer
-Tax preparer
A. Process costing
B. Job-costing
Risk analysis
Indicate whether each risk below is most closely associated with (a) human resource process, (b) conversion process or (c) financing process.
-Employees go on strike.
-Failure to establish a sinking fund.
-Increases in interest rates.
-Lack of available cash for dividends.
-Machinery breaks down.
-Payroll taxes penalties for late payment.
-Poor quality products lead to customer dissatisfaction.
-Raw materials spoil.
-Retirement costs increase because of longer life spans.
-Violations of Americans with Disabilities Act.
A. human resource process
B. conversion process
C. financing process
Explanation / Answer
Coding system: Architect - Job order costingAttorney - Job order costing
Dentist - Job order costing
Heavy-equipment manufacturer - Process costing
House painter - Job order costing
Landscaper - Job oreder costing
Magazine publisher - Process costing
Management consultant - Job order costing
Pet groomer - Job order costing
Tax preparer - Job order costing Risk analysis: Employees go on strike - human resource process
Failure to establish a sinking fund - financing process
Increases in interest rates - financing process
Lack of available cash for dividends - financing process
Machinery breaks down - conversion process
Payroll taxes penalties for late payment - financing process
Poor quality products lead to customer dissatisfaction- conversion process
Raw materials spoil - conversion process
Retirement costs increase because of longer life spans - financing process
Violations of Americans with Disabilities Act - human resource process
Employees go on strike - human resource process
Failure to establish a sinking fund - financing process
Increases in interest rates - financing process
Lack of available cash for dividends - financing process
Machinery breaks down - conversion process
Payroll taxes penalties for late payment - financing process
Poor quality products lead to customer dissatisfaction- conversion process
Raw materials spoil - conversion process
Retirement costs increase because of longer life spans - financing process
Violations of Americans with Disabilities Act - human resource process