Match each of the following phrases with the term (a-g) that it most closely describes.
-Typically used by companies that make custom products
A)Job order cost system
B)Process cost system
C)Activity-based costing
D)Underapplied overhead
E)Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question

Quizplus · Accepted Answer

A job order cost system is typically used for companies that make custom products, where costs are tracked for each individual job or order.

Answer: B
 A process cost system is typically used for companies that produce large quantities of homogeneous products, where costs are averaged over each unit.

Answer: C
 Activity-based costing is a costing method that assigns costs based on the activities that drive them, rather than simply allocating them based on volume or direct labor hours.

Answer: D
 Underapplied overhead occurs when the actual amount of overhead incurred is greater than the amount allocated to production using the predetermined overhead rate.

Answer: E
 Overapplied overhead occurs when the actual amount of overhead incurred is less than the amount allocated to production using the predetermined overhead rate.

Answer: F
 The finished goods ledger is a record of all finished products ready to be sold or shipped to customers.

Answer: G
 The materials ledger is a record of all materials purchased and used in production, including information about their cost and usage.

Match Each of the Following Phrases with the Term (A-G)