Question 1

Overhead includes

Accepted Answer

A) indirect labor. 
B) indirect materials. 
C) supplies. 
D) all of these. 
A) indirect labor. 
B) indirect materials. 
C) supplies. 
D) all of these.

Question 2

A variable cost is one that does not increase in total as output increase and does not decrease in total as output decreases.

Accepted Answer

A) True 
 B)False

Question 3

Period costs

Accepted Answer

A) are selling costs and administrative costs. 
B) are used to compute product cost. 
C) can be included in overhead costs. 
D) are carried in inventory until the goods are sold. 
A) are selling costs and administrative costs. 
B) are used to compute product cost. 
C) can be included in overhead costs. 
D) are carried in inventory until the goods are sold.

Question 4

Which of the following is an example of direct labor?

Accepted Answer

A) vice president of marketing 
B) assembly line worker for televisions 
C) staff accountant 
D) supervisor at a manufacturing plant 
A) vice president of marketing 
B) assembly line worker for televisions 
C) staff accountant 
D) supervisor at a manufacturing plant

Question 5

Costs are subdivided into what two major functional categories?

Accepted Answer

A) opportunity and allocation 
B) fixed and variable 
C) product and non-production 
D) direct and indirect 
A) opportunity and allocation 
B) fixed and variable 
C) product and non-production 
D) direct and indirect

Question 6

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Accepted Answer

The answer of ______________is the amount of cash or cash...

Question 7

Cost is:

Accepted Answer

A) the difference between sales revenue and cost of goods sold. 
B) the benefit given up or sacrificed when on alternative is chosen over another. 
C) the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization. 
D) the revenue per unit. 
A) the difference between sales revenue and cost of goods sold. 
B) the benefit given up or sacrificed when on alternative is chosen over another. 
C) the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization. 
D) the revenue per unit.

Question 8

Figure 2-2. Lonborg Co.had the following beginning and ending inventory balances for the year ended December 31,2011:
  In addition,direct labor costs of $30,000 were incurred,overhead equaled $42,000,materials purchased were $27,000 and selling and administrative costs were $22,000.Lonborg Co.sold 25,000 units of product during the year at a sales price of $5.00 per unit.
Refer to Figure 2-2.What was the amount of cost of goods manufactured for the year?

Accepted Answer

A) $101,000 
B) $124,000 
C) $100,000 
D) $102,000 
A) $101,000 
B) $124,000 
C) $100,000 
D) $102,000

Question 9

An opportunity cost is:

Accepted Answer

A) the benefit given up or sacrificed when one alternative is chosen over another. 
B) the cost to market,distribute,and service a product or service. 
C) the total product cost of goods completed during the current period and transferred to finished goods inventory. 
D) the difference between sales revenue and cost of goods sold. 
A) the benefit given up or sacrificed when one alternative is chosen over another. 
B) the cost to market,distribute,and service a product or service. 
C) the total product cost of goods completed during the current period and transferred to finished goods inventory. 
D) the difference between sales revenue and cost of goods sold.

Question 10

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year.
  Refer to Figure 2-6.What was the sales price per unit?

Accepted Answer

A) $50 
B) $30 
C) $20 
D) $10 
A) $50 
B) $30 
C) $20 
D) $10

Question 11

Period costs are all costs that are not product costs,such as office supplies.

Accepted Answer

A) True 
 B)False

Question 12

If beginning work-in-process inventory is $120,000,ending work-in-process inventory is $160,000,cost of goods manufactured is $400,000 and direct materials used are $100,000,what are the conversion costs?

Accepted Answer

A) $140,000 
B) $280,000 
C) $300,000 
D) $340,000 
A) $140,000 
B) $280,000 
C) $300,000 
D) $340,000

Question 13

Which of the following is an example of a period cost?

Accepted Answer

A) research and development 
B) selling and marketing 
C) general accounting 
D) all of these 
A) research and development 
B) selling and marketing 
C) general accounting 
D) all of these

Question 14

As costs are used up in the production of revenues,they are said to expire.Expired costs are called expenses.

Accepted Answer

A) True 
 B)False

Question 15

Figure 2-7. Gateway Company produces a product with the following per-unit costs:
  Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000.
Refer to Figure 2-7.Prime cost per-unit was?

Accepted Answer

A) $19 
B) $23 
C) $34 
D) $11 
A) $19 
B) $23 
C) $34 
D) $11

Question 16

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Accepted Answer

The answer of A(n)_________________ is the benefit given up or...

Question 17

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May.
  Refer to Figure 2-3.What was the cost of goods sold percent?

Accepted Answer

A) 100% 
B) 19% 
C) 52% 
D) 48% 
A) 100% 
B) 19% 
C) 52% 
D) 48%

Question 18

Figure 2-8. Last year Quest Company incurred the following costs:
  Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero.
Refer to Figure 2-8.Gross margin per-unit was?

Accepted Answer

A) $125 
B) $7 
C) $95 
D) $30 
A) $125 
B) $7 
C) $95 
D) $30

Question 19

The Bayou Company makes crab pots.During the current month,direct materials costing $126,000 were put into production.Direct labor of $78,000 was incurred and overhead equaled $84,000.Selling and administrative expenses totaled $66,000 for the month and the company manufactured 3,000 crab pots.Assume there was no beginning inventory and that 2,800 crab pots were sold.
Required:

Accepted Answer

The answer of The Bayou Company makes crab pots.During the...

Question 20

Costs are directly,not indirectly,associated with cost objects.

Accepted Answer

A) True 
 B)False

Overhead includes

A variable cost is one that does not increase in total as output increase and does not decrease in total as output decreases.

Period costs

Which of the following is an example of direct labor?

Costs are subdivided into what two major functional categories?

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Cost is:

An opportunity cost is:

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year. Refer to Figure 2-6.What was the sales price per unit?

Period costs are all costs that are not product costs,such as office supplies.

If beginning work-in-process inventory is $120,000,ending work-in-process inventory is $160,000,cost of goods manufactured is $400,000 and direct materials used are $100,000,what are the conversion costs?

Which of the following is an example of a period cost?

As costs are used up in the production of revenues,they are said to expire.Expired costs are called expenses.

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Prime cost per-unit was?

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the cost of goods sold percent?

Figure 2-8. Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero. Refer to Figure 2-8.Gross margin per-unit was?

Costs are directly,not indirectly,associated with cost objects.

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

Overhead includes

A variable cost is one that does not increase in total as output increase and does not decrease in total as output decreases.

Period costs

Which of the following is an example of direct labor?

Costs are subdivided into what two major functional categories?

______________is the amount of cash or cash equivalent sacrificed for goods and/or services that are expected to bring a current or future benefit to the organization.

Cost is:

An opportunity cost is:

Figure 2-6. Seaview Company took the following data from their income statement at the end of the current year. Refer to Figure 2-6.What was the sales price per unit?

Period costs are all costs that are not product costs,such as office supplies.

If beginning work-in-process inventory is $120,000,ending work-in-process inventory is $160,000,cost of goods manufactured is $400,000 and direct materials used are $100,000,what are the conversion costs?

Which of the following is an example of a period cost?

As costs are used up in the production of revenues,they are said to expire.Expired costs are called expenses.

Figure 2-7. Gateway Company produces a product with the following per-unit costs: Last year,Gateway produced and sold 750 units at a sales price of $68 each.Total selling and administrative expense was $22,000. Refer to Figure 2-7.Prime cost per-unit was?

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Figure 2-3. Bartlow,Inc.had the following income statement for the month of May. Refer to Figure 2-3.What was the cost of goods sold percent?

Figure 2-8. Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each.Assume that beginning and ending inventories of materials,work in process,and finished goods were zero. Refer to Figure 2-8.Gross margin per-unit was?

Costs are directly,not indirectly,associated with cost objects.

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters