1. Job order costing is applicable to manufacturing firms only and not service firms.
True or False

2.An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:
Select one:
a. Production department.
b. Service department.
c. Primary department.
d. Responsibility department.
e. Control department.

3.Return on total assets for a cost center is a useful measure to evaluate the cost center manager.
Select one:
True
False

4.Equivalent units of production are equal to:
Select one:
a. The number of units that could have been completed if all effort had been applied to units that were started and completed that period.
b. The number of finished units actually produced that period.
c. The number of units introduced into the process that period.
d. The number of units still in process that period.
e. Physical units that were completed this period from all effort being applied to them.

5.A company that produces a large number of standardized units would normally use a job order cost accounting system.
Select one: True or False

6. In a process operation, the direct labor of a production department includes:
Select one:
a. All labor used exclusively by that department, even if the labor is not applied to the product itself.
b. All labor used exclusively by that department, but only if the labor is applied to the product itself.
c. All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians.
d. Only labor that helps more than one production department, such as clerical, repair, and computer technicians.
e. Only that labor that is recorded in the Factory Payroll account.

7.Activity cost pools are an important part of the allocation of overhead costs using activity-based costing.
Select one:
True
False

8.osts that the manager has the power to determine or at least strongly influence are called:
Select one:
a. Uncontrollable costs.
b. Controllable costs.
c. Joint costs.
d. Direct costs.
e. Indirect costs.