Exam 2: Basic Cost Management Concepts

Inventory balances for Spiritlight Ventures for November 2018 are as follows: November 1,2018 November 30,2018 Materials \ 9,000 \ 7,000 Work in process 16,000 12,400 Finished goods 36,000 30,000 During November, purchases of direct materials were $18,000. Direct labor and factory overhead costs were $20,000 and $28,000, respectively. The cost of goods manufactured in November was

Information from the records of the Abel Corporation for July 2018 was as follows: Sales \ 1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is \ 205,000 , fixed overhead is \ 200,000 $\text { Inventories }$ July 1, 2018 July 31,2018 Direct materials \ 36,000 \ 42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The conversion cost is

The resources given up that are expected to bring a current or future benefit to the organization are called __________ .

Information from the records of the Abel Corporation for July 2018 was as follows: Sales \ 1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is \ 205,000 , fixed overhead is \ 200,000 $\text { Inventories }$ July 1, 2018 July 31,2018 Direct materials \ 36,000 \ 42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The variable product costs are

In a company that supplies muffins to bakeries, delivered muffins to bakeries would be a(n)

The three methods of assigning costs to cost objects are direct tracing, driver tracing, and _____.

Error costs can be defined as

The outputs of an accounting information system includes:

Which of the following costs would NOT be included in calculating inventory values under the absorption-costing basis?

The records of the Williamson Company show the following information: Direct materials used \ 90,000 Direct labor 130,000 Factory overhead 150,000 Beginning work-in-process inventory 15,000 Beginning finished goods inventory 20,000 Ending work-in-process inventory 42,000 Selling and administrative expenses 37,500 What was the cost of goods manufactured during the year?

Information from the records of the Abel Corporation for July 2018 was as follows: Sales \ 1,230,000 Selling and administrative expenses 210,000 Direct materials used 264,000 Direct labor 300,000 Factory overhead * 405,000 *variable overhead is \ 205,000 , fixed overhead is \ 200,000 $\text { Inventories }$ July 1, 2018 July 31,2018 Direct materials \ 36,000 \ 42,000 Work in process 75,000 84,000 Finished goods 69,000 57,000 The prime costs are

__________ are generally materials necessary for production that do not become part of the finished product or are not used to provide a service.

Conversion cost is the sum of direct materials and direct labor cost and prime cost is the sum of direct labor and overhead cost.

The overall objective of an activity-based cost management system is to manage activities to reduce costs and improve customer value.

In a cost management system, the cost view does NOT include

The accounting information subsystem that is primarily concerned with producing outputs for external users is called:

The least accurate but easiest to apply method of cost assignment is the __________ method.

Cost management systems are made up of two subsystems: the __________ accounting system and the __________ control system.

Which of the following costs are expensed in the period in which they are incurred?

An example of a period cost is