Question 1

Which of the following are considered product costs?

Accepted Answer

A) period costs and administrative expenses 
B) selling and administrative expenses 
C) inventoriable costs and plant assets 
D) direct labour costs and manufacturing overhead 
A) period costs and administrative expenses 
B) selling and administrative expenses 
C) inventoriable costs and plant assets 
D) direct labour costs and manufacturing overhead

Question 2

If you want to know the amounts a company used to calculate, 'cost of goods manufactured,' where would you look?

Accepted Answer

A) on the income statement 
B) on the Balance Sheet 
C) on both the Balance Sheet and income statement 
D) only in the managerial accounting records 
A) on the income statement 
B) on the Balance Sheet 
C) on both the Balance Sheet and income statement 
D) only in the managerial accounting records

Question 3

Examples of fixed costs include all but one of the following:

Accepted Answer

A) cost of factory rent for the 12 month contract term. 
B) cost of Janet's apartment rent during her 3rd year of university. 
C) cost of a car rental which includes a fee per km driven. 
D) a one-week rental of a carpet cleaning machine. 
A) cost of factory rent for the 12 month contract term. 
B) cost of Janet's apartment rent during her 3rd year of university. 
C) cost of a car rental which includes a fee per km driven. 
D) a one-week rental of a carpet cleaning machine.

Question 4

Outside of the relevant range, which of the following outcomes is unlikely?

Accepted Answer

A) It may be difficult for management to change all fixed costs. 
B) Achieving cost efficiency may be difficult. 
C) Total fixed costs will not change. 
D) At a 0% activity level all fixed costs will cease. 
A) It may be difficult for management to change all fixed costs. 
B) Achieving cost efficiency may be difficult. 
C) Total fixed costs will not change. 
D) At a 0% activity level all fixed costs will cease.

Question 5

Use the following information for questions 
 $\begin{array}{c}
\begin{array}{l}\
\text { Month } \
\text { Jan } \
\text { Feb } \
\text { Mar } \
\text { Apr } \
\text { May } \
\text { Jun } \
\text { Jul } \
\text { Aug }
\end{array}
\begin{array}{l}
\text { Labour }&\text { Overhead } \
 \underline{\text { Hours (X)}}& \underline{\text { Costs (Y)}}\
200 & \$ 415 \
175 & \$ 385 \
290 & \$ 520 \
300 & \$ 534 \
185 & \$ 403 \
265 & \$ 490 \
160 & \$ 372 \
320 & \$ 564
\end{array}
\end{array}$

-What is the slope of this data, using the high-low method?

Accepted Answer

A) $1.76 
B) $180 
C) $1.20 
D) $0.83 
A) $1.76 
B) $180 
C) $1.20 
D) $0.83

Question 6

Which of the following would most likely be included in manufacturing overhead?

Accepted Answer

A) rent on the company's store 
B) insurance on a delivery truck 
C) rent on the company's factory 
D) an oil change on a delivery truck 
A) rent on the company's store 
B) insurance on a delivery truck 
C) rent on the company's factory 
D) an oil change on a delivery truck

Question 7

Which one of the following would not be classified as manufacturing overhead?

Accepted Answer

A) indirect materials 
B) insurance on factory building 
C) indirect labour 
D) direct materials 
A) indirect materials 
B) insurance on factory building 
C) indirect labour 
D) direct materials

Question 8

Inventoriable costs are also referred to as

Accepted Answer

A) product costs. 
B) administrative costs. 
C) period costs. 
D) recorded costs. 
A) product costs. 
B) administrative costs. 
C) period costs. 
D) recorded costs.

Question 9

A company uses sandpaper in its production process.How is the cost of the sandpaper classified?

Accepted Answer

A) an insignificant expense that can be ignored 
B) a direct material 
C) a period cost 
D) a product cost 
A) an insignificant expense that can be ignored 
B) a direct material 
C) a period cost 
D) a product cost

Question 10

Hooter Manufacturing Company reported the following year-end information: $\begin{array}{c}
\begin{array}{l}
\text {Beginning work in process inventory}\
\text {Beginning raw materials inventory}\
\text {Ending work in process inventory}\
\text {Ending raw materials inventory}\
\text {Raw materials purchased}\
\text {Direct labour}\
\text {Manufacturing overhead}
\end{array}
\begin{array}{lll}
\$75,000\
20,000\
73,000\
23,000\
220,000\
170,000\
80,000
\end{array}
\end{array}$

$$\text { How much is Hoater Manufacturing's cost of goods manufactured for the year? }$$

Accepted Answer

A) $470,000 
B) $465,000 
C) $469,000 
D) $472,000 
A) $470,000 
B) $465,000 
C) $469,000 
D) $472,000

Question 11

A company incurred manufacturing costs that were product costs, but they are not classified as either direct materials or direct labour.What are these called?

Accepted Answer

A) manufacturing overhead 
B) selling and administrative expenses 
C) period costs 
D) marketing costs 
A) manufacturing overhead 
B) selling and administrative expenses 
C) period costs 
D) marketing costs

Question 12

Ending finished goods inventory

Accepted Answer

A) appears on a cost of goods manufactured schedule. 
B) for a manufacturing company is equivalent to merchandise inventory for a merchandising company. 
C) represents the cost of completed goods available for sale to customers. 
D) is calculated by adding beginning finished goods inventory to cost of goods sold and subtracting cost of goods manufactured. 
A) appears on a cost of goods manufactured schedule. 
B) for a manufacturing company is equivalent to merchandise inventory for a merchandising company. 
C) represents the cost of completed goods available for sale to customers. 
D) is calculated by adding beginning finished goods inventory to cost of goods sold and subtracting cost of goods manufactured.

Question 13

Manufacturing overhead can be categorized as

Accepted Answer

A) a prime cost and a period cost. 
B) a conversion cost and a period cost. 
C) a prime cost and a product cost. 
D) a conversion cost and a product cost. 
A) a prime cost and a period cost. 
B) a conversion cost and a period cost. 
C) a prime cost and a product cost. 
D) a conversion cost and a product cost.

Question 14

Fees for office cleaning and maintenance in a factory are

Accepted Answer

A) neither direct nor indirect. 
B) fixed product costs. 
C) variable product costs. 
D) fixed or variable product costs. 
A) neither direct nor indirect. 
B) fixed product costs. 
C) variable product costs. 
D) fixed or variable product costs.

Question 15

Which of the following are period costs?

Accepted Answer

A) workers wages in the shipping department 
B) factory workers wages paid for statutory holidays 
C) workers wages in the plant maintenance department 
D) workers wages on an assembly line 
A) workers wages in the shipping department 
B) factory workers wages paid for statutory holidays 
C) workers wages in the plant maintenance department 
D) workers wages on an assembly line

Question 16

Which of the following could be considered either a product or a period cost depending on the purpose?

Accepted Answer

A) manufacturing overhead 
B) direct labour 
C) indirect materials 
D) depreciation 
A) manufacturing overhead 
B) direct labour 
C) indirect materials 
D) depreciation

Question 17

The relevant range can be commonly understood to mean

Accepted Answer

A) the normal range of output (activity)within which the company operates. 
B) the range wherein fixed costs are always fixed. 
C) the range wherein variable costs are strictly curvilinear. 
D) the range wherein fixed costs are strictly proportional to the level of activity. 
A) the normal range of output (activity)within which the company operates. 
B) the range wherein fixed costs are always fixed. 
C) the range wherein variable costs are strictly curvilinear. 
D) the range wherein fixed costs are strictly proportional to the level of activity.

Which of the following are considered product costs?

If you want to know the amounts a company used to calculate, 'cost of goods manufactured,' where would you look?

Examples of fixed costs include all but one of the following:

Outside of the relevant range, which of the following outcomes is unlikely?

Use the following information for questions Month Jan Feb Mar Apr May Jun Jul Aug Labour Overhead 200 \ 415 175 \ 385 290 \ 520 300 \ 534 185 \ 403 265 \ 490 160 \ 372 320 \ 564 -What is the slope of this data, using the high-low method?

Which of the following would most likely be included in manufacturing overhead?

Which one of the following would not be classified as manufacturing overhead?

Inventoriable costs are also referred to as

A company uses sandpaper in its production process.How is the cost of the sandpaper classified?

A company incurred manufacturing costs that were product costs, but they are not classified as either direct materials or direct labour.What are these called?

Ending finished goods inventory

Manufacturing overhead can be categorized as

Fees for office cleaning and maintenance in a factory are

Which of the following are period costs?

Which of the following could be considered either a product or a period cost depending on the purpose?

The relevant range can be commonly understood to mean

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 2: Managerial Cost Concepts and Cost Behaviour Analysis

Which of the following are considered product costs?

If you want to know the amounts a company used to calculate, 'cost of goods manufactured,' where would you look?

Examples of fixed costs include all but one of the following:

Outside of the relevant range, which of the following outcomes is unlikely?

Use the following information for questions Month Jan Feb Mar Apr May Jun Jul Aug Labour Overhead 200 \ 415 175 \ 385 290 \ 520 300 \ 534 185 \ 403 265 \ 490 160 \ 372 320 \ 564 -What is the slope of this data, using the high-low method?

Which of the following would most likely be included in manufacturing overhead?

Which one of the following would not be classified as manufacturing overhead?

Inventoriable costs are also referred to as

A company uses sandpaper in its production process.How is the cost of the sandpaper classified?

A company incurred manufacturing costs that were product costs, but they are not classified as either direct materials or direct labour.What are these called?

Ending finished goods inventory

Manufacturing overhead can be categorized as

Fees for office cleaning and maintenance in a factory are

Which of the following are period costs?

Which of the following could be considered either a product or a period cost depending on the purpose?

The relevant range can be commonly understood to mean

Managerial Accounting

Job Order Costing

Process Costing

Activity-Based-Costing

Cost-Volume-Profit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters