Question 1

All costs related to the manufacturing function in a company are

Accepted Answer

A) prime costs. 
B) direct costs. 
C) product costs. 
D) conversion costs. 
A) prime costs. 
B) direct costs. 
C) product costs. 
D) conversion costs.

Question 2

A variable cost will be an effective cost driver.

Accepted Answer

A) True 
 B)False

Question 3

A cost object is anything for which management wants to collect or accumulate costs.

Accepted Answer

A) True 
 B)False

Question 4

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year:
    Refer to Horner Corporation.The cost of raw material purchased during the year was

Accepted Answer

A) $326. 
B) $346 
C) $375 
D) $426 
A) $326. 
B) $346 
C) $375 
D) $426

Question 5

Moore Company is a construction company that builds greenhouses on special request.What is the proper classification of the carpenters' wages?

Accepted Answer

A) yes yes no 
B) yes no yes 
C) no no no 
D) no yes yes 
A) yes yes no 
B) yes no yes 
C) no no no 
D) no yes yes

Question 6

There is typically a direct relationship between prevention costs and failure costs.

Accepted Answer

A) True 
 B)False

Question 7

Costs that cannot be conveniently traced to a cost object are known as ____________________ costs.

Accepted Answer

The answer of Costs that cannot be conveniently traced to...

Question 8

When the number of units manufactured increases,the most significant change in unit cost will be reflected as a(n)

Accepted Answer

A) increase in the fixed element. 
B) decrease in the variable element. 
C) increase in the mixed element. 
D) decrease in the fixed element. 
A) increase in the fixed element. 
B) decrease in the variable element. 
C) increase in the mixed element. 
D) decrease in the fixed element.

Question 9

Goodwin Enterprises   Refer to Goodwin Enterprises.For April,Cost of Goods Manufactured was

Accepted Answer

A) $141,000 
B) $133,000. 
C) $125,000. 
D) $121,000. 
A) $141,000 
B) $133,000. 
C) $125,000. 
D) $121,000.

Question 10

When cost relationships are linear,total variable prime costs will vary in proportion to changes in

Accepted Answer

A) direct labor hours. 
B) total material cost. 
C) total overhead cost. 
D) production volume. 
A) direct labor hours. 
B) total material cost. 
C) total overhead cost. 
D) production volume.

Question 11

Conversion cost does not include

Accepted Answer

A) direct labor. 
B) direct material. 
C) factory depreciation. 
D) supervisors' salaries. 
A) direct labor. 
B) direct material. 
C) factory depreciation. 
D) supervisors' salaries.

Question 12

A fixed cost remains constant on a per-unit basis as production changes.

Accepted Answer

A) True 
 B)False

Question 13

Costs that are incurred when customers complain are:

Accepted Answer

A) prevention costs 
B) detection costs 
C) appraisal costs 
D) failure costs 
A) prevention costs 
B) detection costs 
C) appraisal costs 
D) failure costs

Question 14

In an actual cost system,overhead is assigned to Work in Process Inventory with a credit entry to the account.

Accepted Answer

A) True 
 B)False

Question 15

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year:
    Refer to Jordan Company.Cost of Goods Sold was

Accepted Answer

A) $691. 
B) $716. 
C) $736. 
D) $801. 
A) $691. 
B) $716. 
C) $736. 
D) $801.

Question 16

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

Accepted Answer

A) expired cost. 
B) fixed cost. 
C) variable cost. 
D) mixed cost. 
A) expired cost. 
B) fixed cost. 
C) variable cost. 
D) mixed cost.

Question 17

In a normal cost system,actual production overhead costs are typically accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

Accepted Answer

A) True 
 B)False

Question 18

A cost that remains unchanged in total within the relevant range is known as a ____________________ cost.

Accepted Answer

The answer of A cost that remains unchanged in total...

Question 19

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

Accepted Answer

A) True 
 B)False

Question 20

A cost that shifts upward or downward when activity changes by a certain interval is referred to as a step cost.

Accepted Answer

A) True 
 B)False

All costs related to the manufacturing function in a company are

A variable cost will be an effective cost driver.

A cost object is anything for which management wants to collect or accumulate costs.

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year: Refer to Horner Corporation.The cost of raw material purchased during the year was

Moore Company is a construction company that builds greenhouses on special request.What is the proper classification of the carpenters' wages?

There is typically a direct relationship between prevention costs and failure costs.

Costs that cannot be conveniently traced to a cost object are known as ____________________ costs.

When the number of units manufactured increases,the most significant change in unit cost will be reflected as a(n)

Goodwin Enterprises Refer to Goodwin Enterprises.For April,Cost of Goods Manufactured was

When cost relationships are linear,total variable prime costs will vary in proportion to changes in

Conversion cost does not include

A fixed cost remains constant on a per-unit basis as production changes.

Costs that are incurred when customers complain are:

In an actual cost system,overhead is assigned to Work in Process Inventory with a credit entry to the account.

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year: Refer to Jordan Company.Cost of Goods Sold was

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

In a normal cost system,actual production overhead costs are typically accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

A cost that remains unchanged in total within the relevant range is known as a ____________________ cost.

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

A cost that shifts upward or downward when activity changes by a certain interval is referred to as a step cost.

Introduction to Cost Accounting

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Exam 2: Cost Terminology and Cost Behaviors

All costs related to the manufacturing function in a company are

A variable cost will be an effective cost driver.

A cost object is anything for which management wants to collect or accumulate costs.

Horner Corporation The following information has been taken from the cost records of Horner Corporation for the past year: Refer to Horner Corporation.The cost of raw material purchased during the year was

Moore Company is a construction company that builds greenhouses on special request.What is the proper classification of the carpenters' wages?

There is typically a direct relationship between prevention costs and failure costs.

Costs that cannot be conveniently traced to a cost object are known as ____________________ costs.

When the number of units manufactured increases,the most significant change in unit cost will be reflected as a(n)

Goodwin Enterprises Refer to Goodwin Enterprises.For April,Cost of Goods Manufactured was

When cost relationships are linear,total variable prime costs will vary in proportion to changes in

Conversion cost does not include

A fixed cost remains constant on a per-unit basis as production changes.

Costs that are incurred when customers complain are:

In an actual cost system,overhead is assigned to Work in Process Inventory with a credit entry to the account.

Jordan Company The following information has been taken from the cost records of Jordan Company for the past year: Refer to Jordan Company.Cost of Goods Sold was

A cost that remains constant in total but varies on a per-unit basis with changes in activity is called a(n)

In a normal cost system,actual production overhead costs are typically accumulated in an Overhead Control account and assigned to Work in Process at the end of the period.

A cost that remains unchanged in total within the relevant range is known as a ____________________ cost.

In a service industry,direct materials are usually insignificant in amount and can not easily be traced to a cost object.

A cost that shifts upward or downward when activity changes by a certain interval is referred to as a step cost.

Introduction to Cost Accounting

Predetermined Overhead Rates, flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Job Order Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting, support Department Allocations, and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters