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MULTIPLE CHOICE 1.Which of the following a characteristic of a service

Question : MULTIPLE CHOICE 1.Which of the following a characteristic of a service : 1416274

MULTIPLE CHOICE

1.Which of the following is a characteristic of a service organization?

a.Provides a tangible product

b.Carries large inventories

c.Receives payments for physical properties

d.Service is consumed at time it is provided

2.Which of the following is generally not considered a service organization?

a.Hair stylists

b.Lawyers

c.Auto dealerships

d.Plumbers

3.Service organizations display the following characteristics, except that:

a.They create more jobs than do manufacturers.

b.They employ more people than do manufacturing concerns.

c.They carry larger inventories than do manufacturing concerns.

d.They account for more than half of all goods and services produced.

4.Examples of service businesses that would use job order costing would include all of the following except:

a.an accounting firm that has audit clients of various sizes and complexities.

b.a “quick oil change” shop that offers only basic maintenance services.

c.an automotive body repair shop specializing in collision repair.

d.a high end salon offering hair, manicure and spa services.

5.A service firm, such as a law firm, would choose direct labor dollars over direct labor hours as a cost driver for overhead because:

a.Overhead is more related to dollars charged than hours worked.

b.Labor hours are harder to track.

c.Labor rates change and thus overhead is automatically updated.

d.Partners and managers incur overhead equally.

6.An example of a direct cost that can be specifically identified with a job and does not have to be allocated to the job using an overhead rate is:

a.travel expenses.

b.fringe benefits.

c.utilities.

d.office machine lease costs.

7.Boyle’s Body Shop repairs automobiles that have been involved in collisions.  It’s budget information follows:

Budgeted direct labor cost$200,000

Budgeted overhead500,000

Budgeted labor rate per hour$10

Since all of Boyle’s technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours.  Paul Evans brought his car to Boyle for fender repair.  It took 5 hours and the new parts for the job totaled $200.  How much overhead was applied to the Evans job?

 

a.$50

b.$125

c.$200

d.$175

8.Boyle’s Body Shop repairs automobiles that have been involved in collisions.  It’s budget information follows:

Budgeted direct labor cost$200,000

Budgeted overhead500,000

Budgeted labor rate per hour$10

Since all of Boyle’s technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours.  Paul Evans brought his car to Boyle for fender repair.  It took 5 hours and the new parts for the job totaled $200.  What was the total cost of the Evans job?

a.$375

b.$200

c.$250

d.$325

9.Boyle’s Body Shop repairs automobiles that have been involved in collisions.  It’s budget information follows:

Budgeted direct labor cost$200,000

Budgeted overhead500,000

Budgeted labor rate per hour$10

Since all of Boyle’s technicians are paid the same rate, Boyle allocates overhead to jobs based on direct labor hours.  Paul Evans brought his car to Boyle for fender repair.  It took 5 hours and the new parts for the job totaled $200.  If Evans was charged $500, what was the percentage of profit to the selling price?

a.35%

b.60%

c.50%

d.25%

10.A report that compares the budgeted costs for the job to the actual costs incurred and indicates the variances is a:

a.Budget analysis.

b.Job cost sheet.

c.Cost analysis.

d.Cost performance report.

 

 

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