Match the Items in the Two Columns Below by Entering

question 135

Short Answer

Match the items in the two columns below by entering the appropriate code letter in the space provided.
A. Cost accounting F. Process cost system
B. Materials requisition slip G. Job cost sheets
C. Time ticket H. Predetermined overhead rate
D. Cost accounting system I. Overapplied overhead
E. Job order cost system J. Underapplied overhead
_____ 1. Used to apply manufacturing overhead to jobs.
_____ 2. Measures, records, and reports product costs.
_____ 3. When actual manufacturing overhead costs are greater than the overhead applied to products.
_____ 4. Manufacturing cost accounts are fully integrated into the general ledger.
_____ 5. Source document which authorizes issuance of raw materials to production.
_____ 6. Appropriate when products have distinguishing and heterogeneous characteristics.
_____ 7. Constitute a subsidiary ledger for Work in Process Inventory.
_____ 8. Indicates number of hours that employees work and the account to be charged.
_____ 9. Appropriate when products are similar and are produced continuously.
_____ 10. When actual manufacturing overhead costs are less than the overhead applied to products.

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Definitions:

Variable Selling Expense

Costs that vary directly with the volume of sales, such as commissions, shipping charges, and promotional expenses.

Cost of Goods Sold

The financial outlays directly associated with the production of a company's sold merchandise.

Variable Administrative Expense

Expenses that vary in direct proportion to changes in an organization's activity level, such as sales commissions.

Traditional Format Income Statement

A financial statement that shows a company's revenues, expenses, and profits, typically starting with sales and subtracting cost of goods sold and other expenses.