Exam 2: Basic Cost Management Concepts

Which of the following costs would be included as part of direct labor?

The Sumter Company recently had a fire in its accounting office, destroying most of its records. Only the following information could be salvaged for 2018: Direct labor \ 400,000 Factory overhead 200,000 Cost of goods sold 800,000 Work in process, January 1 80,000 Finished goods, January 1 160,000 Work in process, December 31 100,000 Finished goods, December 31 120,000 The cost of direct materials used in production during 2018 is

_____ is concerned with determining what activities should be performed and assessing how well they are performed.

Which of the following is a cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control of activities?

The most precise of the three methods of cost assignment is direct tracing since it relies on observable causal relationships.

With regard to services, inseparability means that

According to the rules and conventions of the Financial Accounting Standards Board (FASB), only production costs should be used in calculating product costs for _____.

An example of a nonproduction cost is

Information from the records of Chrome Ponies Enterprises for June 2018 is as follows: Sales \ 41,000 Direct labor 10,000 Selling and administrative expenses 7,000 Direct materials purchases 6,000 Factory overhead 13,500 Inventories June 1,2018 June 30,2018 \ 1,200 \ 1,400 Direct materials 2,500 2,800 Work in process 2,300 1,900 What is the gross margin (profit)?

Which of the following managerial objectives is served by traditional product costs?

In a company that supplies muffins to bakeries, which of the following would be considered an input?

Work in process consists of all partially completed units found in production at a given point in time.

Which of the following would be associated with a functional-based cost accounting information system?

A cost management subsystem designed to provide accurate and timely feedback concerning the performance of managers and others relative to their planning and control activities is called the:

Which of the following costs is a period cost?

Cost is the cash or cash equivalent value sacrificed for goods and services that are expected to bring a current or future loss to the company.

Which of the following is an objective of the operational control system?

With regards to products, perishability can be defined as

Which of the following is a major subsystem of the cost accounting information system?

The records for the previous year for Sarasota Boat Builders, Inc., shows the following data: Selling and administrative expenses \ 300,000 Direct materials used 530,000 Direct labor (100,000 hours) 600,000 Factory overhead application rate \ 5 per DLH $\text { Inventories }$ Beginining Ending Work in process \ 150,000 \ 160,000 Finished goods 80,000 50,000 The cost of goods sold is