Question 1

The income statement for a service firm distinguishes between which of the following costs?

Accepted Answer

A)  Cost of goods manufactured and conversion costs. 
B)  Costs of providing services and product costs. 
C)  Cost of providing service and selling and administrative costs. 
D)  Selling and administrative costs and period costs. 
E)  None of the above. 
A)  Cost of goods manufactured and conversion costs. 
B)  Costs of providing services and product costs. 
C)  Cost of providing service and selling and administrative costs. 
D)  Selling and administrative costs and period costs. 
E)  None of the above.

Question 2

Which of the following includes all the components of conversion costs? a. Direct materials and direct labor.
B) Prime costs plus fixed overhead.
C) Variable overhead and fixed overhead.
D) Direct labor plus capacity costs

Accepted Answer

The answer of Which of the following includes all the...

Question 3

Overhead costs are direct and, as such, are traceable to each product.

Accepted Answer

A) True 
 B)False

Question 4

The Flynn Company began the period with $15,000 worth of raw materials. During the period they purchased an additional $17,000 worth of materials and issued $24,000 of materials for production. In addition, the company paid $8,000 for direct labor costs and $6,000 in manufacturing overhead costs. The balance in the company's Work-in Process inventory account at the end of the period was: a. $38,000
B) $46,000
C) $32,000
D) $40,000

Accepted Answer

The answer of The Flynn Company began the period with...

Question 5

The cost of providing services might include depreciation on equipment.

Accepted Answer

A) True 
 B)False

Question 6

Prime costs are:

Accepted Answer

A)  The sum of materials and labor costs. 
B)  The sum of labor and manufacturing overhead. 
C)  The sum of fixed and variable overhead costs. 
D)  The sum of material, labor, and overhead costs. 
A)  The sum of materials and labor costs. 
B)  The sum of labor and manufacturing overhead. 
C)  The sum of fixed and variable overhead costs. 
D)  The sum of material, labor, and overhead costs.

Question 7

Property taxes on a manufacturing plant is an example of:

Accepted Answer

The answer of Property taxes on a manufacturing plant is...

Question 8

The SurferDude Company manufactures long and short surfboards. The company incurred manufacturing overhead costs of $210,000 in March. They have decided to allocate these costs based on units produced. In March the company produced 8,000 longboards and 6,000 shortboards. The amount of overhead allocated to each product, respectively, would be:

Accepted Answer

The answer of The SurferDude Company manufactures long and short...

Question 9

The Clarke Company provided the following information for the month of December:   The company's cost of goods manufactured for December is:

Accepted Answer

A)  $42,000 
B)  $24,000 
C)  $33,000 
D)  $28,000 
A)  $42,000 
B)  $24,000 
C)  $33,000 
D)  $28,000

Question 10

It frequently is vital to modify accounting reports and use non-financial data to estimate the controllable costs and benefits of a decision option.

Accepted Answer

A) True 
 B)False

Question 11

Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. Information concerning manufacturing overhead and labor for July follows:   How much overhead will be allocated during July to products with a direct labor of 5 hours?

Accepted Answer

A)  $71.00 
B)  $45.44 
C)  $16.00 
D)  $227.20 
A)  $71.00 
B)  $45.44 
C)  $16.00 
D)  $227.20

Question 12

Which of the following is not an example of a service firm? a. Delta Airlines.
B) Blankenship and Hobbs, Attorneys.
C) First State Bank.
D) Hilton Hotels.
E) All of the above are service firms.

Accepted Answer

The answer of Which of the following is not an...

Question 13

The Merchant Tire Company provided the following information for the month of February:   The company's balance in their finished goods inventory account at the end of February is:

Accepted Answer

A)  $23,000 
B)  $18,000 
C)  $5,000 
D)  $41,000 
A)  $23,000 
B)  $18,000 
C)  $5,000 
D)  $41,000

Question 14

The total of all the indirect manufacturing inputs are sometimes referred to as manufacturing allocation.

Accepted Answer

A) True 
 B)False

Question 15

The costs associated with getting products and services ready for sale are known as:

Accepted Answer

A)  Sales costs. 
B)  Conversion costs. 
C)  Opportunity costs. 
D)  Product costs. 
E)  Costs of goods sold. 
A)  Sales costs. 
B)  Conversion costs. 
C)  Opportunity costs. 
D)  Product costs. 
E)  Costs of goods sold.

Question 16

Service firms are distinguished from other firms in that the products service firms offer are not tangible or storable.

Accepted Answer

A) True 
 B)False

Question 17

The allocation rate is $4; the cost object is boats; and the number of boats is the cost driver. The cost pool is $40. There are 4 red boats and 6 blue boats produced. How much cost is allocated to red boats? a. $16
B) $4
C) $40
D) $20

Accepted Answer

The answer of The allocation rate is $4; the cost...

Question 18

Company's controller is calculating the current month's cost of goods manufactured. Which of the following should be considered as part of the calculation? a. Direct labor and indirect costs.
B) Indirect labor and commission expenses.
C) Manufacturing overhead and the corporate vice president's salary.
D) Cost of materials used and finished goods inventory.

Accepted Answer

The answer of Company's controller is calculating the current month's...

Question 19

Packaging materials is an example of: a. Fixed overhead.
B) Direct material.
C) Variable overhead.
D) Period cost.
E) Prime cost.

Accepted Answer

The answer of Packaging materials is an example of: a....

Question 20

Once the production process is completed, firms transfer finished work physically from work-in-process inventory to raw materials inventory.

Accepted Answer

A) True 
 B)False

The income statement for a service firm distinguishes between which of the following costs?

Which of the following includes all the components of conversion costs? a. Direct materials and direct labor. B) Prime costs plus fixed overhead. C) Variable overhead and fixed overhead. D) Direct labor plus capacity costs

Overhead costs are direct and, as such, are traceable to each product.

The cost of providing services might include depreciation on equipment.

Prime costs are:

Property taxes on a manufacturing plant is an example of:

The Clarke Company provided the following information for the month of December: The company's cost of goods manufactured for December is:

It frequently is vital to modify accounting reports and use non-financial data to estimate the controllable costs and benefits of a decision option.

Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. Information concerning manufacturing overhead and labor for July follows: How much overhead will be allocated during July to products with a direct labor of 5 hours?

Which of the following is not an example of a service firm? a. Delta Airlines. B) Blankenship and Hobbs, Attorneys. C) First State Bank. D) Hilton Hotels. E) All of the above are service firms.

The Merchant Tire Company provided the following information for the month of February: The company's balance in their finished goods inventory account at the end of February is:

The total of all the indirect manufacturing inputs are sometimes referred to as manufacturing allocation.

The costs associated with getting products and services ready for sale are known as:

Service firms are distinguished from other firms in that the products service firms offer are not tangible or storable.

The allocation rate is $4; the cost object is boats; and the number of boats is the cost driver. The cost pool is $40. There are 4 red boats and 6 blue boats produced. How much cost is allocated to red boats? a. $16 B) $4 C) $40 D) $20

Packaging materials is an example of: a. Fixed overhead. B) Direct material. C) Variable overhead. D) Period cost. E) Prime cost.

Once the production process is completed, firms transfer finished work physically from work-in-process inventory to raw materials inventory.

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Techniques for Estimating Fixed and Variable Costs

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Support Activity and Dual Rate Allocations

Filters

Exam 3: Cost Flows and Cost Terminology

The income statement for a service firm distinguishes between which of the following costs?

Which of the following includes all the components of conversion costs? a. Direct materials and direct labor. B) Prime costs plus fixed overhead. C) Variable overhead and fixed overhead. D) Direct labor plus capacity costs

Overhead costs are direct and, as such, are traceable to each product.

The cost of providing services might include depreciation on equipment.

Prime costs are:

Property taxes on a manufacturing plant is an example of:

The Clarke Company provided the following information for the month of December: The company's cost of goods manufactured for December is:

It frequently is vital to modify accounting reports and use non-financial data to estimate the controllable costs and benefits of a decision option.

Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. Information concerning manufacturing overhead and labor for July follows: How much overhead will be allocated during July to products with a direct labor of 5 hours?

Which of the following is not an example of a service firm? a. Delta Airlines. B) Blankenship and Hobbs, Attorneys. C) First State Bank. D) Hilton Hotels. E) All of the above are service firms.

The Merchant Tire Company provided the following information for the month of February: The company's balance in their finished goods inventory account at the end of February is:

The total of all the indirect manufacturing inputs are sometimes referred to as manufacturing allocation.

The costs associated with getting products and services ready for sale are known as:

Service firms are distinguished from other firms in that the products service firms offer are not tangible or storable.

The allocation rate is $4; the cost object is boats; and the number of boats is the cost driver. The cost pool is $40. There are 4 red boats and 6 blue boats produced. How much cost is allocated to red boats? a. $16 B) $4 C) $40 D) $20

Packaging materials is an example of: a. Fixed overhead. B) Direct material. C) Variable overhead. D) Period cost. E) Prime cost.

Once the production process is completed, firms transfer finished work physically from work-in-process inventory to raw materials inventory.

Accounting: Information for Decision Making

Identification and Estimating Costs and Benefits

Techniques for Estimating Fixed and Variable Costs

Cost-Volume-Profit Analysis

Decision Making in the Short Term

Operating Budgets: Bridging Planning and Control

Budgetary Control and Variance Analysis

Cost Allocations: Theory and Applications

Activity-Based Costing and Management

Managing Long-Lived Resources: Capital Budgeting

Performance Evaluation in Decentralized Organizations

Strategic Planning and Control

Job Costing

Process Costing

Support Activity and Dual Rate Allocations

Filters