Question 1

How should a company that manufactures automobiles classify its partially completed vehicles?

Accepted Answer

A) Supplies. 
B) Raw materials inventory. 
C) Finished goods inventory. 
D) Cost of goods manufactured. 
E) Work-in-process inventory. 
A) Supplies. 
B) Raw materials inventory. 
C) Finished goods inventory. 
D) Cost of goods manufactured. 
E) Work-in-process inventory. E

Question 2

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

Accepted Answer

A) $1,050,000. 
B) $830,000. 
C) $895,000. 
D) $1,270,000. 
E) None of the answers is correct. 
A) $1,050,000. 
B) $830,000. 
C) $895,000. 
D) $1,270,000. 
E) None of the answers is correct. A

Question 3

Cost of goods manufactured for Branson Books for the year was $860,000.Beginning work-in-process inventory was $40,000.Ending work-in-process was $60,000.If the beginning ﬁnished goods inventory was $400,000 and the ending ﬁnished goods inventory was $990,000 what was the cost of goods sold for the year?

Accepted Answer

A) $230,000. 
B) $270,000. 
C) $460,000. 
D) $1,240,000. 
E) None of these answers is correct. 
A) $230,000. 
B) $270,000. 
C) $460,000. 
D) $1,240,000. 
E) None of these answers is correct. B

Question 4

The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 5

Indirect costs:

Accepted Answer

A) can be traced to a cost object. 
B) cannot be traced to a particular cost object. 
C) are not important. 
D) are always variable costs. 
E) may be indirect with respect to theme park but direct with respect to one of its major 
A) can be traced to a cost object. 
B) cannot be traced to a particular cost object. 
C) are not important. 
D) are always variable costs. 
E) may be indirect with respect to theme park but direct with respect to one of its major

Question 6

Which of the following costs is not a component of manufacturing overhead?

Accepted Answer

A) Indirect materials. 
B) Factory utilities. 
C) Factory equipment. 
D) Indirect labor. 
E) Property taxes on the manufacturing plant. 
A) Indirect materials. 
B) Factory utilities. 
C) Factory equipment. 
D) Indirect labor. 
E) Property taxes on the manufacturing plant.

Question 7

Which type of production process is likely used for custom yachts built by Hargrave?

Accepted Answer

A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly. 
A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly.

Question 8

Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Accepted Answer

A) $101,400. 
B) $127,650. 
C) $130,150. 
D) $157,650. 
E) None of the answers is correct. 
A) $101,400. 
B) $127,650. 
C) $130,150. 
D) $157,650. 
E) None of the answers is correct.

Question 9

Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Accepted Answer

A) $395,400. 
B) $385,000. 
C) $390,200. 
D) $400,600. 
E) None of the answers is correct. 
A) $395,400. 
B) $385,000. 
C) $390,200. 
D) $400,600. 
E) None of the answers is correct.

Question 10

Which type of production process is likely used by a paint manufacturer to produce paint?

Accepted Answer

A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly. 
A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly.

Question 11

Which type of production process is ideal for a low production volume and one-of-a-kind products?

Accepted Answer

A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly. 
A) Batch. 
B) Continuous Flow. 
C) Job Shop. 
D) Assembly. 
E) Direct assembly.

Question 12

There are three standard categories of manufacturing processes.

Accepted Answer

A) True 
 B)False

Question 13

The accounting records of Falcon Company revealed the following information:   Falcon's cost of goods manufactured is:

Accepted Answer

A) $519,000. 
B) $522,000. 
C) $568,000. 
D) $571,000. 
E) None of the answers is correct. 
A) $519,000. 
B) $522,000. 
C) $568,000. 
D) $571,000. 
E) None of the answers is correct.

Question 14

The ﬁxed cost per unit:

Accepted Answer

A) will increase as activity increases. 
B) will decrease as activity decreases. 
C) will decrease as activity remains constant. 
D) will remain constant. 
E) will increase as activity decreases and will decrease as activity increases. 
A) will increase as activity increases. 
B) will decrease as activity decreases. 
C) will decrease as activity remains constant. 
D) will remain constant. 
E) will increase as activity decreases and will decrease as activity increases.

Question 15

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

Accepted Answer

A) True 
 B)False

Question 16

As activity increases, unit variable cost:

Accepted Answer

A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a ﬁxed amount. 
E) decreases by a ﬁxed amount. 
A) increases proportionately with activity. 
B) decreases proportionately with activity. 
C) remains constant. 
D) increases by a ﬁxed amount. 
E) decreases by a ﬁxed amount.

Question 17

Which of the four items listed below is not a type of production process?

Accepted Answer

A) Batch. 
B) Job Shop. 
C) Continuous Flow. 
D) Job Flow. 
E) Assembly. 
A) Batch. 
B) Job Shop. 
C) Continuous Flow. 
D) Job Flow. 
E) Assembly.

Question 18

Depreciation of factory equipment would be classiﬁed as:

Accepted Answer

A) operating cost. 
B) "other" cost. 
C) manufacturing overhead. 
D) period cost. 
E) administrative cost. 
A) operating cost. 
B) "other" cost. 
C) manufacturing overhead. 
D) period cost. 
E) administrative cost.

Question 19

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

Accepted Answer

A) Wheel lubricant. 
B) Tires. 
C) Interior leather. 
D) CD player. 
E) Sheet metal used in the automobile's body. 
A) Wheel lubricant. 
B) Tires. 
C) Interior leather. 
D) CD player. 
E) Sheet metal used in the automobile's body.

Question 20

The accounting records of Comacho Company revealed the following costs, among others:   Costs that would be considered in the calculation of manufacturing overhead total:

Accepted Answer

A) $149,000. 
B) $171,000. 
C) $186,000. 
D) $442,000. 
E) None of the answers is correct. 
A) $149,000. 
B) $171,000. 
C) $186,000. 
D) $442,000. 
E) None of the answers is correct.

How should a company that manufactures automobiles classify its partially completed vehicles?

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Indirect costs:

Which of the following costs is not a component of manufacturing overhead?

Which type of production process is likely used for custom yachts built by Hargrave?

Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Which type of production process is likely used by a paint manufacturer to produce paint?

Which type of production process is ideal for a low production volume and one-of-a-kind products?

There are three standard categories of manufacturing processes.

The accounting records of Falcon Company revealed the following information: Falcon's cost of goods manufactured is:

The ﬁxed cost per unit:

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

As activity increases, unit variable cost:

Which of the four items listed below is not a type of production process?

Depreciation of factory equipment would be classiﬁed as:

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

The accounting records of Comacho Company revealed the following costs, among others: Costs that would be considered in the calculation of manufacturing overhead total:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Inventory Management and Economic Order Quantity (EOQ) Analysis

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Exam 2: Basic Cost Management Concepts

How should a company that manufactures automobiles classify its partially completed vehicles?

The accounting records of Dixon Company revealed the following costs: direct materials used, $250,000; direct labor, $425,000; manufacturing overhead, $375,000; and selling and administrative expenses, $220,000.Dixon's product costs total:

The total cost of direct material, direct labor, and manufacturing overhead transferred from work-in- process inventory to ﬁnished-goods inventory is called the cost of goods manufactured.

Indirect costs:

Which of the following costs is not a component of manufacturing overhead?

Which type of production process is likely used for custom yachts built by Hargrave?

Compton Inc.has a beginning materials inventory balance for May of $27,500, and an ending balance for May of $28,750.Materials used during the month were $128,900.As a result, what is the cost of materials purchased during the month?

Dorsett Technologies had ﬁnished goods inventory on January 1, 20X8 of $29,300 and ﬁnished goods inventory on December 31, 20X8 of $24,100.If the cost of goods manufactured for the year was $385,000, what was the cost of goods sold for the year?

Which type of production process is likely used by a paint manufacturer to produce paint?

Which type of production process is ideal for a low production volume and one-of-a-kind products?

There are three standard categories of manufacturing processes.

The accounting records of Falcon Company revealed the following information: Falcon's cost of goods manufactured is:

The ﬁxed cost per unit:

Out-of-pocket costs are deﬁned as the beneﬁt that is sacriﬁced when the choice of one action precludes taking an alternative course of action.

As activity increases, unit variable cost:

Which of the four items listed below is not a type of production process?

Depreciation of factory equipment would be classiﬁed as:

Which of the following would not be classiﬁed as direct materials by a company that makes automobiles?

The accounting records of Comacho Company revealed the following costs, among others: Costs that would be considered in the calculation of manufacturing overhead total:

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Product Costing and Cost Accumulation in a Batch Production Environment

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis, Cost Behavior, and Cost Estimation

Cost-Volume-Profit Analysis

Variable Costing and the Costs of Quality and Sustainability

Financial Planning and Analysis: the Master Budget

Standard Costing and Analysis of Direct Costs

Flexible Budgeting and Analysis of Overhead Costs

Responsibility Accounting, Operational Performance Measures, and the Balanced Scorecard

Inventory Management and Economic Order Quantity (EOQ) Analysis

Filters