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CPA Canada CFE Job Order Costing — practice questions

Explore 29 free Job Order Costing questions in CPA Canada CFE Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Job Order Costing questions and exercises with answers

Showing questions 1–29 of 29.

A contractor builds one custom deck designed for a single client's garden. Costs are best traced using:Read the answer and worked solution →A cereal plant runs the same recipe continuously through the same departments. Its costs are best traced using:Read the answer and worked solution →A tax firm prepares a different return for every client and tracks costs client by client. It uses a:Read the answer and worked solution →The three product costs of any manufactured item are direct materials, manufacturing overhead and direct:Read the answer and worked solution →Direct materials plus direct labour together are known as:Read the answer and worked solution →Direct labour plus manufacturing overhead together are known as:Read the answer and worked solution →Wood used to build a chair can be traced straight to that chair, so it counts as a direct:Read the answer and worked solution →Glue, stain and nails used in a furniture factory are treated instead as indirect:Read the answer and worked solution →The wage of a factory floor supervisor who oversees several jobs is treated as indirect:Read the answer and worked solution →A worker assembling parts on the factory floor has wages recorded as direct:Read the answer and worked solution →Salaries of staff in the marketing department are treated not as product cost but as sales and:Read the answer and worked solution →A record that gathers the materials, labour and overhead for one particular job is a job cost:Read the answer and worked solution →Product costs sit in inventory and only become an expense in the period when the job is:Read the answer and worked solution →A finished sign made in March is still unsold at the year end. Its production cost sits in:Read the answer and worked solution →Manufacturing overhead has three components: indirect materials, other overhead and indirect:Read the answer and worked solution →A firm estimates overhead of 400,000 and direct labour of 200,000. Applied overhead per labour dollar is:Read the answer and worked solution →A rate set before the year begins and left unchanged through it is the predetermined overhead:Read the answer and worked solution →Direct labour hours, direct labour dollars and machine hours are all used as an allocation:Read the answer and worked solution →The overhead figure worked out during the budgeting process, before the year starts, is described as:Read the answer and worked solution →A firm mass produces a part but assembles custom units from it, so it uses a costing system that is:Read the answer and worked solution →A job order system costs more to run than a process system because it tracks costs for each:Read the answer and worked solution →Catch the product costsRead the answer and worked solution →Pop the job costsRead the answer and worked solution →Run the costing gatesRead the answer and worked solution →Slice the cost wordsRead the answer and worked solution →Direct or indirectRead the answer and worked solution →Sort the costing wordsRead the answer and worked solution →Type the numberRead the answer and worked solution →Costing bingoRead the answer and worked solution →

Worked practice questions

A contractor builds one custom deck designed for a single client's garden. Costs are best traced using:

  1. Job order costing
  2. Joint order costing
  3. Journal entry costing
  4. Jobbing rate costing
Show answer and solution

Correct answer: A. Job order costing

1. The work is unique and made to that customer's order. 2. Every material and labour cost can be tied to that one deck. 3. Tracing costs to an individual job is job order costing. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._

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A cereal plant runs the same recipe continuously through the same departments. Its costs are best traced using:

  1. Parcel costing
  2. Process costing
  3. Prompt costing
  4. Profit costing
Show answer and solution

Correct answer: B. Process costing

1. The output is homogeneous and the flow never stops. 2. No single box can be tied to its own slice of material and time. 3. Continuous production of similar units calls for process costing. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._

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A tax firm prepares a different return for every client and tracks costs client by client. It uses a:

  1. Jobbing pool system
  2. Job order system
  3. Joint stock system
  4. Journal book system
Show answer and solution

Correct answer: B. Job order system

1. Each return is customised for one taxpayer. 2. Costs differ from client to client and can be traced that way. 3. The firm uses a job order system. _Source: OpenStax Principles of Managerial Accounting, Chapter 4, Job Order Costing._

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