Exam 2: Basic Cost Management Concepts

Which of the following costs is a product cost?

Information from the records of the Conundrum Company for September 2018 was as follows: Sales \ 307,500 Selling and administrative expenses 52,500 Direct materials used 66,000 Direct labor 75,000 Variable factory overhead 50,000 Factory overhead 51,250 Inventories Sept. 1,2018 Sept 30,2018 Direct materials \ 8,000 \ 10,500 Work in process 18,750 21,000 Finished goods 17,250 14,250 Conundrum Corporation produced 20,000 units. What are the total variable costs per unit?

Which of the following is a trait of a traditional cost management system?

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

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

Product costs include production, marketing, and customer service, and are used for strategic design decisions and tactical profitability analysis.

Which of the following is an example of an expense?

Information from the records of the Conundrum Company for September 2018 was as follows: Sales \ 307,500 Selling and administrative expenses 52,500 Direct materials used 66,000 Direct labor 75,000 Variable factory overhead 50,000 Factory overhead 51,250 Inventories Sept. 1,2018 Sept 30,2018 Direct materials \ 8,000 \ 10,500 Work in process 18,750 21,000 Finished goods 17,250 14,250 Conundrum Corporation produced 20,000 units. If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs per unit respectively?

Which cost assignment method would likely assign the cost of maintenance for machines in a department that does cutting when the cutting activity is the cost object?

A company has purchased some steel to use in the production of steel railings. If this steel has NOT been put into production, it would be classified as

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 cost of goods sold?

Information from the records of the Conundrum Company for September 2018 was as follows: Sales \ 307,500 Selling and administrative expenses 52,500 Direct materials used 66,000 Direct labor 75,000 Variable factory overhead 50,000 Factory overhead 51,250 Inventories Sept. 1,2018 Sept 30,2018 Direct materials \ 8,000 \ 10,500 Work in process 18,750 21,000 Finished goods 17,250 14,250 Conundrum Corporation produced 20,000 units. What is the total product cost per unit?

The cost accounting system that emphasizes tracing over allocation is called an activity-based accounting system.

The following information for the Sutton Glass Company has been provided: Cost of goods manufactured $\quad \$ 100,000$ Work in process: Beginning 15,000 Ending 20,000 Direct labor 30,000 Direct materials used ? Factory overhead 45,000 What is the amount of direct materials used?

Product value-chain costs assist managers in meeting which of the following objectives?

Which of the following statements is true of traceability?

In deciding whether to implement a(n) __________ cost management system, managers must evaluate the trade-off between costs of measurement and cost of errors.

Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats?

Which of the following items would NOT appear on an income statement of a service organization?

Expired costs used up in the generation of revenues are called __________ .