Exam 2: Basic Cost Management Concepts

Assume the following information for the Blue Knights Corporation for the year ended December 31, 2018: Sales \ 2,250 Cost of goods manufactured for the year 1,350 Beginning finished goods inventory 450 Ending finished goods inventory 495 Selling and administrative expenses 300 What is the cost of goods sold for the year ended December 31, 2018?

In a functional-based management system, one is NOT likely to find

In a company that supplies muffins to bakeries, which of the following would NOT be considered an input?

__________ means the consumer cannot see, hear, feel, or taste a service before it is bought.

The sum of the total additions to work in process during a period is

The records of Bentler Shoppers, Inc. for December 2018 shows the following information: Sales \ 2,050,000 Selling and administrative expenses 250,000 Direct materials purchases 205,000 Direct labor 298,000 Factory overhead 350,000 Direct materials, December 1 50,000 Work-in-process, December 1 85,000 Finished goods, December 1 64,000 Direct materials, December 31 41,000 Work-in-process, December 31 72,000 Finished goods, December 31 55,000 The net income for the month of December is:

__________ income is the difference between gross margin and selling and administrative expenses.

A cost used up in the production of revenues is a(n)

The cost of goods manufactured represents the total manufacturing cost of goods completed during the current period.

What is a disadvantage of assigning costs evenly over all cost objects?

The cost management information system is primarily concerned with producing outputs for internal users using inputs and processes needed to satisfy management objectives.

Beginning work-in-process inventory is $188,000, ending work-in-process inventory is $220,000, cost of goods manufactured is $850,000, and direct materials used are $162,000. What are the conversion costs?

Which of the following will be included in traditional product costs?

One or more of the following is (are) a cost accounting system(s) that use(s) only unit-based activity drivers to assign costs to cost objects.

In an accounting information system, the inputs are usually

Factors that cause changes in resource usage, activity usage, costs and revenues are called

The system that focuses on the management of activities with the objective of improving the value received by the customer and the profit received by providing this value is called.

Which of the following is a trait of an activity-based cost management system?

The cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers relative to their control of activities is the __________ information system.

Which of the following costs incurred by a bus manufacturer would NOT be directly attributable to the finished product?