Question 1

For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by the _____.

Accepted Answer

A) Securities and Exchange Commission (SE
C)  
B) Trade Reporting and Compliance Board (TRCP) 
C) International Ethics Standards Board (IES
B)  
D) Monetary and Securities Trade Regulation Commission (MSTR
C)  
A) Securities and Exchange Commission (SE
C)  
B) Trade Reporting and Compliance Board (TRCP) 
C) International Ethics Standards Board (IES
B)  
D) Monetary and Securities Trade Regulation Commission (MSTR
C)

Question 2

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

Accepted Answer

A) materials inventory 
B) cost of goods available for sale 
C) cost of goods manufactured 
D) finished goods inventory 
A) materials inventory 
B) cost of goods available for sale 
C) cost of goods manufactured 
D) finished goods inventory

Question 3

Inventory balances for Marshall, Inc., in June 2018 are as follows: $$\begin{array} { l c c } 
& \text { June } 1,2018 & \text { June } 30,2018 \
\text { Raw materials } & \$ 1,125 & \$ 875 \
\text { Work in process } & 2,000 & 1,550 \
\text { Finished goods } & 4,500 & 3,750
\end{array}$$
During June, purchases of direct materials were $1,500. Direct labor and factory overhead costs were $2,500 and $3,500, respectively.
Conversion costs for June were

Accepted Answer

A) $8,200. 
B) $7,750. 
C) $7,500. 
D) $6,000. 
A) $8,200. 
B) $7,750. 
C) $7,500. 
D) $6,000.

Question 4

A(n) _____ is a basic unit of work performed within an organization.

Accepted Answer

A) allocation 
B) object 
C) driver 
D) activity 
A) allocation 
B) object 
C) driver 
D) activity

Question 5

Gross margin is the difference between __________ and the cost of goods or services sold.

Accepted Answer

The answer of Gross margin is the difference between __________...

Question 6

Product costs are converted from cost to expense when

Accepted Answer

A) units are completed. 
B) materials are purchased. 
C) units are sold. 
D) materials are requisitioned. 
A) units are completed. 
B) materials are purchased. 
C) units are sold. 
D) materials are requisitioned.

Question 7

Costs that are expensed in the period in which they are incurred are called:

Accepted Answer

A) Direct materials costs 
B) Product costs 
C) Noninventoriable costs 
D) Inventoriable costs 
A) Direct materials costs 
B) Product costs 
C) Noninventoriable costs 
D) Inventoriable costs

Question 8

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

Accepted Answer

A) True 
 B)False

Question 9

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.

Accepted Answer

The answer of Costs necessary to market and distribute a...

Question 10

Prime product costs include

Accepted Answer

A) only factory overhead. 
B) only direct labor. 
C) direct labor and factory overhead. 
D) direct materials and direct labor. 
A) only factory overhead. 
B) only direct labor. 
C) direct labor and factory overhead. 
D) direct materials and direct labor.

Question 11

Which of the following is a service organization?

Accepted Answer

A) grocery store 
B) CPA firm 
C) cattle ranch 
D) department store 
A) grocery store 
B) CPA firm 
C) cattle ranch 
D) department store

Question 12

Order-getting costs would NOT include

Accepted Answer

A) marketing costs. 
B) customer service costs. 
C) advertising. 
D) salaries of sales personnel. 
A) marketing costs. 
B) customer service costs. 
C) advertising. 
D) salaries of sales personnel.

Question 13

Which of the following costs is a period cost for a manufacturing company?

Accepted Answer

A) controller's salary 
B) wages of machine operators 
C) insurance on factory equipment 
D) fringe benefits for factory employees 
A) controller's salary 
B) wages of machine operators 
C) insurance on factory equipment 
D) fringe benefits for factory employees

Question 14

In preparing an income statement, __________ and __________ costs are separated.

Accepted Answer

production

Question 15

Cost assignment is one of the key processes of the cost accounting system.

Accepted Answer

A) True 
 B)False

Question 16

The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following costs is an example of product costs?

Accepted Answer

A) selling commissions 
B) nonfactory office salaries 
C) direct materials 
D) advertising expense 
A) selling commissions 
B) nonfactory office salaries 
C) direct materials 
D) advertising expense

Question 18

Value-chain product costs include which of the following?

Accepted Answer

A) customer service costs 
B) marketing costs 
C) research and development 
D) all of the above 
A) customer service costs 
B) marketing costs 
C) research and development 
D) all of the above

Question 19

Which of the following is an example of a loss?

Accepted Answer

A) the cost of a product delivered to a customer 
B) the cost of a delivered advertising campaign 
C) the cost of the purchase of equipment 
D) the write-off of an obsolete product 
A) the cost of a product delivered to a customer 
B) the cost of a delivered advertising campaign 
C) the cost of the purchase of equipment 
D) the write-off of an obsolete product

Question 20

Error costs are costs associated with measurements required by the cost management system and measurement costs are the costs associated with making poor decisions.

Accepted Answer

A) True 
 B)False

For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by the _____.

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

A(n) _____ is a basic unit of work performed within an organization.

Gross margin is the difference between __________ and the cost of goods or services sold.

Product costs are converted from cost to expense when

Costs that are expensed in the period in which they are incurred are called:

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs.

Prime product costs include

Which of the following is a service organization?

Order-getting costs would NOT include

Which of the following costs is a period cost for a manufacturing company?

In preparing an income statement, and costs are separated.

Cost assignment is one of the key processes of the cost accounting system.

The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers.

Which of the following costs is an example of product costs?

Value-chain product costs include which of the following?

Which of the following is an example of a loss?

Error costs are costs associated with measurements required by the cost management system and measurement costs are the costs associated with making poor decisions.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 2: Basic Cost Management Concepts

For financial accounting, the nature of the inputs and the rules and conventions governing processes are defined by the _____.

The merchandise inventory in a merchandising business corresponds most closely to which of the following items in a manufacturing firm?

A(n) _____ is a basic unit of work performed within an organization.

Gross margin is the difference between __________ and the cost of goods or services sold.

Product costs are converted from cost to expense when

Costs that are expensed in the period in which they are incurred are called:

Intangible products are goods produced by converting raw material into finished products through the use of labor and capital inputs.

Costs necessary to market and distribute a product or service are often referred to as order- __________ and order- __________ costs.

Prime product costs include

Which of the following is a service organization?

Order-getting costs would NOT include

Which of the following costs is a period cost for a manufacturing company?

In preparing an income statement, __________ and __________ costs are separated.

Cost assignment is one of the key processes of the cost accounting system.

The value chain is the set of activities required to design, develop, produce, market, deliver and provide post-sales service for the products and services sold to customers.

Which of the following costs is an example of product costs?

Value-chain product costs include which of the following?

Which of the following is an example of a loss?

Error costs are costs associated with measurements required by the cost management system and measurement costs are the costs associated with making poor decisions.

Introduction to Cost Management

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Costs necessary to market and distribute a product or service are often referred to as order- and order- costs.

In preparing an income statement, and costs are separated.