Question : Multiple Choice Questions 112. If Custom Craft uses a job order cost : 1229507

Multiple Choice Questions

112. If Custom Craft uses a job order cost system, each of the following is true except:
A. Individual job cost sheets accumulate all manufacturing costs applicable to each job and together constitute a subsidiary ledger for the Work in Process Inventory account.
Direct labor cost applicable to individual jobs is recorded when paid by a debit to Work in Process Inventory and a credit to Cash, as well as by entering the amount on the job cost sheets.
C. The amount of direct materials used in individual jobs is recorded by debiting the Work in Process Inventory account and crediting the Materials Inventory account, as well as by entering the amount used on job cost sheets.
D. The manufacturing overhead applied to each job is transferred from the Manufacturing Overhead account to the Work in Process Inventory account, as well as entered on the individual job cost sheets.

113. When job costing is in use, under-applied overhead:
A. Represents the cost of manufacturing overhead that relates to unfinished jobs.
B. Is indicated by a credit balance remaining at year-end in the Manufacturing Overhead account.
C. Is closed out at year-end into the Cost of Goods Sold account if the amount is not material.
D. Results when actual overhead costs incurred during a year are less than the amounts applied to individual jobs.

114. 114.Which of the following businesses would most likely use job order costing?
A. A print shop that specializes in wedding invitations.
B. A company that makes frozen pizzas.
C. A brewery.
D. An oil refinery.

115. The purpose of an overhead application rate is to:
A. Assign a portion of indirect manufacturing costs to each product manufactured.
B. Determine the type and amount of costs to be debited to the Manufacturing Overhead.
C. Charge the Work-in-Process Inventory amount with the appropriate amount of direct of manufacturing costs.
D. Allocate manufacturing overhead to expense in proportion to the number of units manufactured during the period.

116. Which of the following are true regarding activity-based costing?
A. A primary goal of using ABC is the accurate allocation of manufacturing overhead to product lines.
B. Under ABC, direct labor hours is never used to allocate overhead costs to activity pools or product lines.
C. The use of ABC is indicated when it is suspected that each of the firm’s product lines consume approximately the same amount of overhead resources but the current allocation scheme assigns each line a substantially different amount.
D. ABC can be used in conjunction with process costing.

117. Which of the following would be the most appropriate basis for allocating the costs of plant insurance which covers equipment theft and damage?
A. Direct labor hours.
B. Value of equipment.
C. Machine hours.
D. Square feet of plant space.

118. 118.Using ABC to allocate manufacturing overhead can help managers to:
A. Identify what activities drive overhead costs.
B. Set product prices.
C. Locate inefficiencies in the production process.
D. Do all of the above.

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July 1, 2023

Distinguishing Inductive and Deductive Reasoning

Required Resources
Read/review the following resources for this activity:

· Textbook: Chapter 8, 9, 17 (Introduction)

· Lesson

· Minimum of 1 scholarly source (in addition to the textbook)

Click on the following tabs to review the concepts that will be addressed in this activity:

A valid structure is the way in which an argument is put together that assures it will pass the test of logical strength.

Deductive: In deductive arguments, the speaker asserts that her premises are true and, therefore, her conclusion must be accepted. Remember that in a deductive argument, logical strength does not depend on the literal truth of the premises. When we test for logical strength, we assume the premises are true. Once we determine that the argument is logically valid, we can then look at the actual – not presumed – truth of the premises.

Inductive: In inductive arguments, the speaker presents evidence that she claims support the probable truth of her conclusion – that her conclusion is the most likely true – and so you should accept it.

The Basic Structure of Deductive and Inductive Arguments
Argument examples:

Deductive Argument Example: “Tightening laws restricting the use and possession of firearms does not protect average law-abiding citizens; it only puts them at greater risk. Enforcing licensing restrictions, trigger locks, and waiting periods makes it more difficult for law-abiding citizens to defend themselves, and, as a result, encourages criminal activity. Only criminals benefit when ordinary citizens are deprived of their right to own a firearm and protect themselves, their homes, and their families" (Lott, 2000, p. 169)

Lott, J., (2000). More guns, less crime: Understanding crime and gun-control laws. University of Chicago Press.

The argument boils down to this:

· Laws that are obeyed by ordinary citizens and not obeyed by criminals are laws that put ordinary citizens at risk.

· Tight gun laws are laws that are obeyed only by ordinary citizens.

· Tight gun laws put ordinary citizens at risk.

However, the argument itself is composed of three intertwined syllogisms:

Only ordinary citizens are persons who respect tight gun laws.
Criminal persons are not ordinary citizens.
Therefore, criminals do not respect tight gun laws.

Tight gun laws restrict only ordinary citizens.
No criminal is an ordinary citizen.
No criminal is restricted by tight gun laws.

Laws that disfavor the good are laws that favor the bad.
Tight gun laws favor the bad.
Therefore, tight gun laws disfavor the good.

Notice that you cannot remove any of the “legs” and maintain the claim. Notice, also, that the reasons are closely connected and depend on or follow from each other. Notice, also, that the first premise (called the major premise) must be accepted as true, or the entire argument fails.

Inductive Argument: The United States is too dependent upon foreign oil. According to the U.S. Department of Energy, we rely on imported foreign oil for about 45% of our needs. Of the imported oil, most comes from Canada, but 22% comes from countries in the Middle East. Undeniably, this dependence shapes our foreign policy. We have vast oil reserves that could make us energy independent. Development of these resources would produce much-needed jobs, many of them in areas of the country suffering most from the recession. We should be developing an energy policy that makes us energy independent.

· Reason: We import 45% of our oil.

· Reason: Middle East oil imports shape our foreign policy.

· Reason: Our vast oil reserves could make us energy independent.

· Reason: Development of oil reserves could produce much needed jobs.

· Conclusion: For any or all of the above, independent reasons, we should become energy independent.

Notice that any one of these reasons, standing alone, could support the conclusions; they are not logically related to one another as they would be in a syllogism.

Initial Post Instructions
For the initial post, address the following:

· Find and post examples of deductive and inductive arguments. Do NOT use an argument example which clearly indicates it is an example of an inductive/deductive argument.

· For each example, evaluate its logical strength, using the concepts and ideas presented in the textbook readings, the lesson, and any other source you find that helps you to evaluate the validity (deductive) or strength (inductive) of the argument. You can use examples from the text, or you can find examples elsewhere.

oEditorials and opinion columns are a good source, as are letters to the editor. Blogs will also often be based on arguments.

oUse mapping and evaluative techniques to make sure it is an argument.

· Is it inductive or deductive? Explain why.

· Does it pass the tests of validity and strength? Explain.