Exam 2: Basic Cost Management Concepts

The sum of direct labor and factory overhead is referred to as

The Financial accounting information system provides information for three broad objectives: costing services and products, planning and control, and decision making.

Which of the following costs would be considered a direct material?

The following information has been provided for Hopen Enterprises: Cost of goods manufactured \ 7,500 Work in process Beginning 1,200 Ending 1,400 Direct labor 4,000 Materials placed in production 1,500 Factory overhead ? What is the amount of factory overhead?

An example of a tangible product, rather than a service, would be

Information from the records of Masibo Company for the last month is as follows: Purchases of direct materials \ 65,000 Indirect labor 25,000 Direct labor 32,500 Depreciation on factory machinery 12,000 Sales 205,900 Selling and administrative expenses 21,000 Rent on factory building 28,000 Inventories Beginning Ending Direct materials \ 30,000 \ 30,100 Work in process 9,000 10,100 Finished goods 22,000 20,100 Required: a.Prepare a statement of cost of goods manufactured for the last month. b.Prepare an income statement for the last month. c.Determine prime and conversion costs.

Selling and administrative costs are classified as

A computerized information system that strives to input data once and to make it available to people across the company for different purposes is called a:

Morton Manufacturing shows cost of goods sold for the month of March was $90,000. The finished goods inventory was $15,000 on March 1 and $17,500 on March 31. Beginning and ending work-in-process inventories were $20,000 and $25,000, respectively. What was the cost of goods manufactured during March?

Which of the following costs would be included as part of direct materials in the production of an automobile?

Services differ from tangible products on three dimension: intangibility, perishability, and inseparability.

Which of the following items is NEVER relevant to the cost flows of a service organization?

If physical observation can NOT be used to identify the exact amount of resources consumed by a cost object, the next best approach is

Conversion costs do NOT include

Assume the following data for Rodriguez Services, an accounting firm, for November: Beginning materials inventory \ 20,000 Beginning work-in-process inventory 40,000 Ending work-in-process inventory 50,000 Ending materials inventory 10,000 Actual overhead costs 100,000 Direct materials used 60,000 Direct labor 200,000 What is the cost of services sold for November?

The direct costs of operating a college computer center would NOT include

Selected data concerning the past year's operations of the Motor City Corporation are as follows: Selling and administrative expenses \ 225,000 Direct materials used 467,500 Direct labor ( 50,000 hours) 450,000 Factory overhead aplication rate 8 per DLH $\text { Inventories }$ Beginning Ending Direct material \ 75,000 \ 67,500 Work in process 112,500 135,000 Finished goods 60,000 37,500 The cost of direct materials purchased is

The set of interrelated parts that performs one or more processes to accomplish specific objectives is called a(n):

High quality cost management systems should have an organization-wide perspective. Which of the following would NOT be a benefit of a cost management system?

The three methods of cost assignment are direct tracing, driver tracing, and allocation.