Question Case

1. An example of a direct cost for a service provided by an accounting firm, such as a tax return, would be:

depreciation on computer system

labor of staff accountant who prepared the return

labor of file clerk who filed copies of return

paper on which return is printed

2. In a manufacturing environment, an indirect cost such as ______ would usually be allocated to a cost object.

utilities

raw materials

labor of employees who operate manufacturing equipment

labor of administrative secretaries

3. Job order costing:

can only be used in manufacturing

records the flow of costs for each customer

allocates an equal amount of cost to each unit made during a time period

is commonly used when each unit of output is identical

4. A job cost sheet details the:

direct materials purchased and paid

direct labor costs incurred

indirect labor costs incurred

actual support costs incurred

5. In a job order costing system, a manufacturing firm typically uses a cost driver rate to estimate the __________ used for a job.

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