Exam 2: Managerial Cost Concepts and Cost Behaviour Analysis

Manufacturing costs that cannot be classified as direct material or direct labour are classified as operating expenses.

Product costs are inventoriable costs.

Use the following information for questions . \# Machine Maintenance Jan 3,000 \ 440 Feb 4,500 \ 690 Mar 8,000 \ 510 Apr 7,000 \ 600 May 6,000 \ 550 Jun 9,000 \ 980 Jul 3,500 \ 840 Auq 5,500 \ 600 -What is the equation of the line using the high-low method and this data?

In which of the following categories do indirect materials belong? $\quad$$\quad$ Product Manufacturing Period a) $\quad\quad\quad\mathrm{No} \quad\quad\quad\quad\quad \mathrm{No} \quad\quad\quad\quad \text { Yes }$ b) $\quad\quad\quad\mathrm{Yes} \quad\quad\quad\quad\quad \mathrm{No} \quad\quad\quad\quad \text { No }$ c) $\quad\quad\quad\mathrm{Yes} \quad\quad\quad\quad\quad \mathrm{Yes} \quad\quad\quad\quad \text { No }$ d) $\quad\quad\quad\mathrm{Yes} \quad\quad\quad\quad\quad \mathrm{Yes} \quad\quad\quad\quad \text { Yes }$

Use the following information for questions Caltreck Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31,2015 Dec. 31,2016 Raw materials inventory \ 100,000 \ 80,000 Work in process inventory 130,000 145,000 Finished goods inventory 125,000 115,000 During 2016, Caltreck purchased $950,000 of raw materials, incurred direct labour costs of $125,000, and incurred manufacturing overhead totalling $160,000. -How much raw materials is transferred to production during 2016 for Caltreck Manufacturing?

In which classification would the wages of a factory payroll clerk be classified?

Direct material costs and direct labour costs are prime costs.

Which one of the following is NOT considered a 'material' cost?

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

Which one of the following is most likely a direct material?

Where would you expect to find ending raw materials inventory?

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

The cost of the management accountant working in the front office of a company is a

How does a manufacturing company classify sales commissions?

In a manufacturing company, the cost of direct labour treated as an expense when

In what category are lubricants that are used for wheel bearings on skateboards produced by a manufacturer categorized?

Which of the following is a manufacturing activity?

Where there is a linear relationship between two variables,

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?

The total cost of a finished product generally contains equal amounts of material, labour, and manufacturing overhead costs.