272 Chapter 8 c. C 3 c. III. Multiple Choice 1 Which of the following is a hybrid costing system that applies to batches of like or similar products? Process costing system Fixed costing system d. Variable costing system b. Operation costing system 2. In backflush costing, the journal entry to record direct-labor costs incurred would include a Debit to work-in-process c. Credit to work-in-process b. Debit to conversion costs d. Credit to cost of goods sold 3 A manager's needs regarding cost management and accuracy in product costing, and the underlying production system, determine the choice of an) Costing system Operation system b. Manufacturing system d. Production system When backflush costing is used, managers generally do not use which of the following to keep track of operations? Complex costing methods Nonfinancial measures b. Computer monitoring d. Personal observations 5. Key features in a just-in-time production system include all of the following excepi Streamlining operations. b. Continuous striving for quality improvement. Elimination of storage and handling costs. d. Prorating manufacturing lead time. 6. All of the following are reasons to use backflush costing, except Managers tend to use their limited resources on developing more accurate product cost data. b. Complex ledger systems may be too costly to develop under traditional cost tracking systems. c. Accuracy is critical when allocating accurate conversion cost per unit. d. A fairly rough allocation may be sufficient for external reporting purposes. 7. All of the following statements about operation costing systems are true except Direct materials are traced to each batch of goods. b. Direct materials are not treated in the same manner as in a job-costing system C. Conversion costs are traced to each process. d. Conversion costs are allocated only to units passing through that operation. C. a a