Job costing

Do you need a job card in job costing process?

• Yes

• No

What is the best description of job costing?

• used when a product of one process becomes the material of another

• used in areas such as hotels, transport and entertainment where an actual product is not made

• used to determine a break-even point

• used when work consists of different products each time, made to meet customer's specific needs

Material costs in job costing must all come from the same department. True or False?

• True

• False

What items of expenditure go together to make up the PRIME COST?

• Materials only

• Labour only

• Both materials and labour

• Materials, labour and overheads

Where are you unlikely to see job costing being used?

• In a garage
• In construction
• In designer fashion
• In a chemical plant

How do you convert a profit margin % to a profit mark-up %?

• Profit Margin % / (100 - Profit Margin %)

• 100% / Profit Margin %

• (Profit Margin % - 100%) / Profit Margin %

• (100% - Profit Margin %) / 100%

There are two ways of expressing profit. Which one is being described here?

Expressed as a % of cost of job

• Profit mark-up

• Profit margin

There are two ways of expressing profit. Which one is being described here?

Expressed as a % of the selling price

• Profit mark-up

• Profit margin

True or False?

A company will always turn down a job which will not generate any profit.

• True

• False

True or False?

Except when a factory-wide method of recovery is used, overheads are applied by each department using their own method e.g. machine hours or labour hours

• True

• False