Question

1. Internal resources, such as the legal department, training department, information technology, tend to be under-utilized, leading to a death spiral, when:
   A. managers may choose whether to purchase the service internally or externally
   B. the internal pricing system seeks to recover sunk costs
   C. the internal pricing system utilizes full costs
   D. all of the choices are correct
   
2. Of the following statements, which is true?
   A. Joint costs are incurred only in disassembly
   B. The costs of harvesting a pineapple plantation are additional processing costs
   C. Common costs are incurred only in disassembly
   D. Joint cost allocations are helpful in assessing a product's profitability
   
3. Which of the following would most likely use a job order costing system?
   A. a paper-mill
   B. a swimming pool installer
   C. a company that manufactures chlorine for swimming pools
   D. an oil refinery
   
4. A summary of the materials being issued to production during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for
   A. Work in Process and Cost of Goods Sold
   B. Work in Process and Factory Overhead
   C. Finished Goods and Cost of Goods Sold
   D. Work in Process and Finished Goods increases

Answer 1

Answer 1

Internal resources, such as the legal department, training department, information technology, tend to be under-utilized, leading to a death spiral, when:

A. managers may choose whether to purchase the service internally or externally -Correct
B. the internal pricing system seeks to recover sunk costs -Correct
C. the internal pricing system utilizes full costs -Correct
D. all of the choices are correct -Correct

Hence correct answer is option D. all of the choices are correct

Answer 2

Of the following statements, which is true?
A. Joint costs are incurred only in disassembly-Correct. Joint costs occur only in disassembly processes
B. The costs of harvesting a pineapple plantation are additional processing costs-Incorrect. the costs of harvesting are joint costs
C. Common costs are incurred only in disassembly-Incorrect. Common costs are incurred in both assembly and disassembly.
D. Joint cost allocations are helpful in assessing a product's profitability-Incorrect. joint cost allocations should not be used in evaluating a product's profitability

Hence correct answer is option A. Joint costs are incurred only in disassembly

Answer 3

Which of the following would most likely use a job order costing system?
Correct answer is option B. a swimming pool installer

Answer

A summary of the materials being issued to production during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Correct answer is option B. Work in Process and Factory Overhead

Direct material to  Work in Process and Indirect material to Factory Overhead