Please answer the following questions. 1. In a JIT cost accounting system, a. no
ID: 2652706 • Letter: P
Question
Please answer the following questions.
1. In a JIT cost accounting system,
a. no inventories are kept on hand.
b. no manufacturing overhead costs are incurred.
c. a company strives to have the right amount of materials, parts, and products on hand.
d. conversion costs are eliminated.
2. The number of purchase orders would be an appropriate cost driver for
a. inspecting and testing cost.
b. machining cost.
c. ordering and receiving materials cost.
d. supervising cost.
3. Which one of the following is a product-level activity?
a. Assembly of staplers
b. Every tenth stapler produced is tested to be sure it meets quality standards.
c. The factory janitor is paid.
d. A setup is undertaken when the model of staplers to be produced changes.
4. The primary benefit of activity-based costing is that it leads to
a. more cost pools used to assign overhead costs to products.
b. more accurate product costing.
c. enhanced control over overhead costs.
d. better management decisions.
Explanation / Answer
1) a - No inventories are kept in hand
2) c - Ordering and Receiving Materials Cost.
3) b - Every tenth stapler produced is tested to be sure it meets quality standards
4) b - more accurate product costing.