Chapter 7

Question 1

Unit of a product that is easily distinguishable from other units.

Answer 1

Job

Question 2

Firm that produces jobs.

Answer 2

job shop

Question 3

Record of the cost of the job kept in the accounting system.

Answer 3

job cost sheet

Question 4

Account that records financial transactions for a specific customer, vendor, or job.

Answer 4

subsidiary ledger account

Question 5

Account in the general ledger that summarizes a set of subsidiary ledger accounts.

Answer 5

control account

Question 6

Excess of actual overhead costs incurred over applied overhead costs.

Answer 6

underapplied overhead

Question 7

Excess of applied overhead costs over actual overhead incurred during a period.

Answer 7

overapplied overhead

Question 8

Cost of job determined by actual direct material and labor cost plus overhead applied using a predetermined rate and an actual allocation base.

Answer 8

normal cost

Question 9

Cost of job determined by actual direct material and labor cost plus overhead applied using an actual overhead rate and an actual allocation base.

Answer 9

actual cost

Question 10

Cost of job determined by standard (budgeted) direct material and labor cost plus overhead applied using a predetermined overhead rate and a standard (budgeted) allocation base.

Answer 10

standard cost

Question 11

Complex job that often takes months or years to complete and requires the work of many different departments, divisions, or subcontractors.

Answer 11

project